How Much Does US Government Owe? Congressional Budget Office Projects Ballooning Deficit, Debt – By Marcy Kreiter (IB Times) / Jan 28 2020
KEY POINTS
- The 2020 U.S. budget deficit is expected to hit $1 trillion and to average $1.3 trillion annually over the next decade
- The deficit and the debt as a percentage of growth is higher than it’s been since World War II
- Consumers will hold the economy up in 2020 but that strength will wane in coming years
The nonpartisan Congressional Budget Office on Tuesday projected budget deficits exceeding $1 trillion through 2030, with the national debt growing to 98% of gross domestic product by the end of the time period.
CBO Director Phill Swagel warned the growth of the debt burden is unsustainable.
The CBO said the 2020 deficit likely will hit $1 trillion — $8 billion more than what was projected last August — and then average $1.3 trillion over the next decade. The projected deficits rise from 4.6% of GDP to 5.4% by 2030.
“Not since World War II has the country seen deficits during times of low unemployment that are as large as those that we project—nor, in the past century, has it experienced large deficits for as long as we project,” Swagel said in a blog post.
The national debt is expected to grow to 81% of GDP for 2020, increasing to 98% by 2030, the highest percentage since 1946. If the trajectory is not altered, that percentage grows to 180% by 2050, an increase of 30 percentage points over what was projected in June and far higher than it’s ever been.
The national debt stood at $23.2 trillion Tuesday.
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