In the media today, it is tough to find an objective source of information. You may have noticed that I am very interested in non-partisan reports, and I try to keep our blog updated with my perspective on these reports.
About a month ago, the Medicare Board of Trustees Report was released which showed a projected depletion of the Hospital Insurance fund by 2028. You can find my article here related to this report.
CBO 2016 Long-Term Budget Outlook
Last week (July 12, 2016), the non-partisan Congressional Budget Office (CBO) released the Long-Term Budget Outlook, which is a broader report that shows similar concerning trends. •
Here are a few of the key takeaways directly from the recent CBO Report.
- “If current laws governing taxes and spending did not change, the United States would face steadily increasing federal budget deficits and debt over the next 30 years, according to projections by CBO.“
- “Federal debt held by the public, which was equal to 39 percent of gross domestic product (GDP) at the end of fiscal year 2008, has already risen to 75 percent of GDP in the wake of a financial crisis and a recession.”
- “In CBO’s projections, that debt rises to 86 percent of GDP in 2026 and to 141 percent in 2046—exceeding the historical peak of 106 percent that occurred just after World War II. “
- “The prospect of such large debt poses substantial risks for the nation and presents policymakers with significant challenges.”
This strong language is from a non-partisan CBO report. This is not a scare tactic from one side of the aisle. We need this to be one of the top issues that are policy makers are focusing on after the election. Medicare & Social Security are two great benefits in this country – but we need policy reform initiated ASAP to keep these systems financially viable for generations to come.
I am always curious to get people's perspectives on these key issues. Is this economic projection blown out of proportion or is it a major risk? What are some suggested solutions? I presented a few solution paths in my last article on the Medicare Board of Trustees Report, . Feel free to share your thoughts on our blog.