The latest projections from the Congressional Budget Office (CBO) showing that the federal budget deficit will come down in the next couple of years and then start rising again are well known at this stage. Therefore, it is helpful to dig a little deeper in the numbers and look at what will be driving those deficits.
Congress appears likely to avoid a government shutdown before soon adjourning again to campaign and to further fund the government during a lame duck session after the election. But there are a host of other fiscal issues that policymakers appear content to ignore for the time being.
A new report compares the U.S. debt to that of other top economies and finds that the trend is not in our favor.
Congress is back from its five-week August Recess this week. While there are lots of issues to contend with, upcoming elections and a short calendar likely mean that relatively little will get done in a Congress that has already been dubbed the most unproductive ever.
The U.S. isn’t the only country struggling with high debt. Many other countries have seen debt get out of control and they have paid the price for it.