Federal budget policy is a disaster

Started by joesixpack, February 03, 2020, 07:39:52 AM

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joesixpack

QuoteFederal budget policy is a disaster. The government will spend $4.6 trillion this year, raise $3.6 trillion in tax revenues, and fill the gap with $1 trillion in fresh borrowing. That is like a worker earning $36,000 in income but spending $46,000 and putting $10,000 on credit cards. Maybe he can get away with the excess spending for a while, but eventually his finances will crash.

The CBO's baseline projections show spending rising faster than revenues in coming years, with the result that annual deficits by 2030 are expected to hit $1.74 trillion. Spending in 2030 at $7.49 trillion will be 30 percent higher than revenues of $5.75 trillion, as shown in the chart below.

Those projections are ugly, but they are optimistic if policymakers do not enact major reforms. One optimistic CBO assumption is that discretionary spending will decline as a share of GDP in coming years, which seems unlikely given that both parties these days push for higher spending. So I've included on the chart a "more likely" spending projection that assumes discretionary spending stays at today's share of GDP.

https://www.cato.org/blog/federal-budget-outlook-worse-cbo



This is one of the most concerning things since probably 9/11 but definitely since the financial crisis.

Add that to the fact that the CBO was being optimistic with it's predictions, I think it's important that we tackle this as a nation going forward.
Rules of Engagement

noun: democracy
a system of government by the whole population or all the eligible members of a state, typically through elected representatives.

Reps pre 1912 = mostly Progressive
Dems pre 1928 = mostly Conservative

walkstall

Quote from: joesixpack on February 03, 2020, 07:39:52 AM


This is one of the most concerning things since probably 9/11 but definitely since the financial crisis.

Add that to the fact that the CBO was being optimistic with it's predictions, I think it's important that we tackle this as a nation going forward.


Good luck with that.  The Dem's will be working at impeaching president Trump for the next 4+ years.   Remember it's the Dem's that like spending other peoples money.
A politician thinks of the next election. A statesman, of the next generation.- James Freeman Clarke

Always remember "Feelings Aren't Facts."

joesixpack

Quote from: walkstall on February 03, 2020, 07:55:43 AM

Good luck with that.  The Dem's will be working at impeaching president Trump for the next 4+ years.   Remember it's the Dem's that like spending other peoples money.

Both parties are clearly guilty. They both need to get serious about it, imo.

Although, from my understanding, we owe the money to ourselves for the.most part

https://www.thebalance.com/deficit-by-president-what-budget-deficits-hide-3306151
Rules of Engagement

noun: democracy
a system of government by the whole population or all the eligible members of a state, typically through elected representatives.

Reps pre 1912 = mostly Progressive
Dems pre 1928 = mostly Conservative