Is the Debt Crisis Over?: Ritholtz Chart

Barry Ritholtz is a Bloomberg View columnist. He founded Ritholtz Wealth Management and was chief executive and director of equity research at FusionIQ, a quantitative research firm. He blogs at the Big Picture and is the author of “Bailout Nation: How Greed and Easy Money Corrupted Wall Street and Shook the World Economy.”
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Today's chart comes from the Center on Budget and Policy Priorities. It shows how much debt projections have changed during the past four years:

Right after the credit crisis, projections showed the ratio of debt to gross domestic product in the U.S. reaching 225 percent by 2040. Improvements to the economy since then have increased tax receipts and lowered demand for safety net programs. According to the latest forecast, the debt-to-GDP ratio will be a bit more than 100 percent by 2040. That isn't ideal, but it's far below crisis levels.

Here is CPBB:

Under current budget policies, the nation's fiscal outlook is stable for the rest of this decade and then worsens gradually, according to CBPP's new long-term budget projections. No deficit or debt crisis looms, and the weak labor market remains the nation's most immediate economic concern.

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To contact the author on this story:
Barry L Ritholtz at britholtz3@bloomberg.net