I know, I know, nobody cares, "deficits don't matter", screw future generations, we're having a great party now, and "it'll all take care of itself over time". I know, I know.
But there's just one thing.
I do care.
Under the assumptions CBO made for this 125-year picture of the federal government's finances, the projected rise in expenditures for Social Security, Medicare, and Medicaid would drive total federal outlays well above the level that they have been throughout much of the post-World War II period.
The core costs of the federal government--that is, ignoring net interest on the debt--could rise from approximately 18 percent of GDP today to 24 percent in 2050 and 28 percent in 2075.
Left unattended, that steady escalation in spending could cause major deficits to emerge and thereby push the government's debt and interest expenditures to unprecedented levels.
The total cost of government, including interest expense, could more than double as a share of the economy, rising from 19 percent of GDP today to 40 percent in 2075
November 25, 2006
On our way to insolvency (or hyperinflation) - a picture of US debt, revenue and expenses as % of GDP
Posted by blogger at 11/25/2006