The Congressional Budget Office has just released its new 10-year fiscal forecast and the numbers are getting worse.
Most people are focusing on the fact that the deficit is rising rather than falling and that annual government borrowing will again climb above $1 trillion by 2022.
This isn’t good news, of course, but it’s a mistake to focus on the symptom of red ink rather than the underlying disease of excessive spending.
So here’s the really bad news in the report.
- The burden of government spending has jumped from 20.3 percent of GDP in 2014 to 21.2 percent this year.
- By the end of the 10-year forecast, the federal government will consume 23.1 percent of the economy’s output.