Ignore Long-Term Forecasts Assuming No Medicare Fix
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How much should you worry about the level of federal government debt in 2075? The Congressional Budget Office forecasts deficits and debts out that far, and the numbers are eye-popping. According to the CBO, total debt is on a trajectory to reach 700 percent of gross domestic product.
The implication, of course, is that we are on an unsustainable path. Either we’ll face some sort of dramatic fiscal disaster or the government’s debts will more gradually become an unbearable burden. Either way, the budget and our political inability to bring it under control will surely derail growth. Or will it?