Ever-growing deficits threaten to drive federal debt to new highs and stifle economic growth.
Each year spending outpaces revenues for the federal government. According to the Congressional Budget Office (CBO), this trend is not expected to end anytime soon. In fact, CBO projects that from 2017 through 2027, Congress will spend $10.8 trillion more than it collects in revenue. The largest portions of spending will be for major healthcare programs (Medicare and Medicaid) and Social Security, which together total more than all other spending combined.
Continual deficit spending drives up the federal debt, and continually rising deficits will cause the national debt to increase faster than GDP is projected to grow. By 2027, the nation’s debt that is held by the public will rise from less than 80 percent of GDP to greater than 90 percent of GDP, and it will continue to be an ever-growing drag on American economic growth.