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Chart-Storm:
Today, CBO released the new 30-year budget baseline. It forecasts the public debt rising to 144% of GDP under *rosy scenario* -- all tax cuts expire, int. rates rates remain at historic lows, no wars or recessions, shrinking DOD budget, no new govt. programs. 1/
Today, CBO released the new 30-year budget baseline. It forecasts the public debt rising to 144% of GDP under *rosy scenario* -- all tax cuts expire, int. rates rates remain at historic lows, no wars or recessions, shrinking DOD budget, no new govt. programs. 1/
Overall, CBO forecasts $80 trillion in new deficits over 30 years. Why? Social Security & Medicare will require $63 trillion in general revenue transfers to pay benefits, which will also add $40 trillion in interest costs. The rest of the budget will run a $23 trillion surplus 2/
2017 tax cuts obviously dug the deficit hole deeper. However, its a myth that everything was fine with Social Security & Medicare until we cut taxes, or that repeal would get us off the hook for additional program reforms. Repeal if you want, but we still must fix programs 3/
Most damning chart. In 30 years, the Social Security & Medicare systems will be running an annual deficit of 12.1% of GDP (including interest costs). The rest of the budget will run a 3.4% of GDP surplus.
Obviously, 2 programs running a 12.1% of GDP deficit isnt sustainable. 4/
Obviously, 2 programs running a 12.1% of GDP deficit isnt sustainable. 4/
Bonus chart from Urban Institute: We always hear that SocSec & Medicare cant be reformed because people paid in to the system. Well, most are getting back much more. Medicare recipients get back 3x what they paid in. Not remotely sustainable with 74 million boomers retiring. 5/5
(on the chart above, Social Security is on the left, Medicare on the right...the label was missing)
