Cato Scholar Commentary on CBO’s Budget and Economic Outlook

“The CBO’s projections remind us that our fiscal trajectory remains unsustainable. By 2036, the debt-to-GDP ratio, a common measure of fiscal health, is projected to reach 120 percent, far exceeding World War II record-highs. Spending on old-age retirement programs, health care, and interest on the debt remain the primary causes of ballooning deficits and debt levels. This reckless borrowing has real, tangible costs for Americans, creating inflationary pressure, slowing economic growth, and making borrowing more costly. Should bondholders lose confidence in the Treasury’s ability or willingness to service debt, the US could face a sudden, severe, and economically painful fiscal crisis. It’s time Congress took the budget challenge seriously and reduced the growth of entitlement program spending, including reforming Social Security and Medicare.”