Douglas W. Elmendorf - Director CBOFrom the Director of The Congressional Budget Office's blog.
Today I had the opportunity to testify before the Senate Budget Committee about CBO’s most recent analysis of the long-term budget outlook.
Under current law, the federal budget is on an unsustainable path, because federal debt will continue to grow much faster than the economy over the long run.
Large budget deficits would reduce national saving, leading to more borrowing from abroad and less domestic investment, which in turn would depress economic growth in the United States. Over time, accumulating debt would cause substantial harm to the economy.
CBO estimates that in fiscal years 2009 and 2010, the federal government will record its largest budget deficits as a share of GDP since shortly after World War II. As a result of those deficits, federal debt held by the public will soar from 41 percent of GDP at the end of fiscal year 2008 to 60 percent at the end of fiscal year 2010. This higher debt results in permanently higher spending to pay interest on that debt.
So ... what to do, what to do. VP Biden has the answer. Is it to slash taxes? Is it tort reform? Is it converting to the fair tax? Is it reducing the size and scope of government? Is it eliminating ridiculous environmental rules? No.
Pay close attention and try to follow the liberal logic. Ok, prepared? Here you go.
Large budget deficits would reduce national saving, leading to more borrowing from abroad and less domestic investment, which in turn would depress economic growth in the United States. Over time, accumulating debt would cause substantial harm to the economy.
CBO estimates that in fiscal years 2009 and 2010, the federal government will record its largest budget deficits as a share of GDP since shortly after World War II. As a result of those deficits, federal debt held by the public will soar from 41 percent of GDP at the end of fiscal year 2008 to 60 percent at the end of fiscal year 2010. This higher debt results in permanently higher spending to pay interest on that debt.
So ... what to do, what to do. VP Biden has the answer. Is it to slash taxes? Is it tort reform? Is it converting to the fair tax? Is it reducing the size and scope of government? Is it eliminating ridiculous environmental rules? No.
Pay close attention and try to follow the liberal logic. Ok, prepared? Here you go.
“We’re going to go bankrupt as a nation,” Biden said.
“Now, people when I say that look at me and say, ‘What are you talking about, Joe? You’re telling me we have to go spend money to keep from going bankrupt?’” Biden said. “The answer is yes, that's what I’m telling you.” More at CNS News:
Yes, in order to fix our debt problem, we have to borrow more money. The only good news is that the Dipshitocrats are going to screw America up so bad they'll never have a majority again.
“Now, people when I say that look at me and say, ‘What are you talking about, Joe? You’re telling me we have to go spend money to keep from going bankrupt?’” Biden said. “The answer is yes, that's what I’m telling you.” More at CNS News:
Yes, in order to fix our debt problem, we have to borrow more money. The only good news is that the Dipshitocrats are going to screw America up so bad they'll never have a majority again.
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