For the past two years, conservatives have been prattling on about deficits and how they will sink the US and destroy the economy for many years. President Obama and the democrats have been calling those warnings “scaremongering” and they have been doing their best to spend even more.
Paul Krugman and Ben Bernanke have seen saying the way out of the problems involve massive spending. Obama’s sleight of hand tricks, making tiny cuts here and there, while sticking to business as usual have, according to the president, effectively lowered the deficits into the future.
This week, the Congressional Budget Office blew the democrat position out of the water, when they reported that massive entitlement spending will send the deficit into the stratosphere.
According to the Congressional Budget Office, Federal entitlement spending will rise at an average annual rate of 5.9 percent through 2024. This in turn will increase federal spending annually from 2.1 trillion in 2014 to $3.7 trillion in 2024.
The CBO predicts a federal budget deficit rise of over 4 percent of GDP by the end of the decade, and the cumulative deficit is set to reach $7.9 trillion.
That is a lot of money – and it is $1 trillion more than previously projected.
Congratulations to the brains trusts in Congress, the Federal Reserve and President Obama!
After 2020, future deficits are projected to rise even more sharply. The aging population and healthcare inflation are the main culprits, according to the CBO.
Insider Report wrote last week that CBO projections don’t include data on total state debt, which has already topped $5 trillion. [States’ Massive Debts Join The Shadow of The National Debt]
No prizes for guessing that fiscal conservatives will be beating the drum for this craziness as the race for the mid-term elections gets under way.
