CBPP’s Updated Long-Term Fiscal Deficit and Debt Projections

Source: Kris Cox, Kathy Ruffing, James R. Horney, and Paul N. Van de Water, Center on Budget and Policy Priorities, September 30, 2009

From the summary:
For a number of years, the Center on Budget and Policy Priorities (CBPP) has projected the long-term path of federal spending, revenues, deficits, and debt if current policies remain unchanged. These projections have shown that deficits and debt will grow in coming decades to unprecedented levels that will not only compromise the federal government’s ability to address critical national priorities, but also pose a real threat to the U.S. economy and Americans’ standard of living.

Thus, while it is imperative that we avoid undercutting ongoing efforts to spur a recovery from what is in many respects the worst recession since the 1930s, it is vital that policymakers begin as soon as possible to take the steps needed to raise revenues and slow spending growth when the economy recovers in order to put the budget on a sustainable path. They can — and must — do this in a way that also maintains policies that meet crucial national needs and that avoids further increasing poverty and inequality.

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