It’s no secret that policymakers in Washington are having a hard time getting things done. They will need to turn things around soon as they face critical matters in which failure would have serious consequences, such as passing a federal budget, agreeing on government spending in order to avoid a government shutdown, and raising the debt limit in order to avert a national default. Fortunately, there is a way forward.
Things are hot and heavy in Washington in the middle of summer with lots of action on issues affecting the budget and debt. The forecast calls for deficits and debt to rise considerably but the outlook for producing next year’s budget remains unclear. Here’s your fix for the latest developments on the federal budget and national debt.
The official budget watchdog of Congress issued its latest budget and economic forecast on Thursday, showing deficits and debt growing even higher than previously expected. It also repeated a now familiar warning that high and rising debt will negatively impact the economy, the country, and each of us.
Around this time of year, we usually hear from the president on the state of the union. Now, a bipartisan group of lawmakers want an annual look specifically at our fiscal situation.
The new budget numbers predict that the federal budget deficit will hit the $1 trillion mark by 2023 -- a year earlier than expected last year. National debt held by the public will grow from 77 percent today to 89 percent in 2027 -- that is more than twice the 50-year debt average of less than 40 percent.
National Debt and You