As Washington grapples with the implications of its fiscal policies, the Congressional Budget Office (CBO) is forecasting a budget deficit of $1.6 trillion for fiscal year 2024. This deficit is anticipated to expand to $1.8 trillion in 2025, eventually ballooning to $2.6 trillion by 2034, according to the Congressional Budget Office (CBO). Such projections underscore a pattern of spending that, to many observers, appears to be unchecked. The escalating debt has prompted concern from lawmakers and business leaders, who have begun to voice their anxieties. Among them is Fred Smith, the founder of FedEx, who characterized the fiscal situation as "unsustainable" in a recent interview with Bret Baier on Fox News. “And more recently, our government has been borrowing money at an enormous rate, almost $2 trillion last year. And the CBO just announced that we'll spend more on interest this year than we'll spend on the Defense Department,” Smith said during a recent interview with Bret Baier on Fox News. “These subjects are not even mentioned in our political discourse these days — it’s very concerning.” CBO data show that federal debt held by the public was 97 percent of gross domestic product (GDP) in 2022 and is projected to grow twice as fast as the U.S. economy over the next 30 years. “Well, I think a lot of people are saying that. The chairman of the Federal Reserve said it Sunday evening a week ago. The head of our largest bank, I believe JP Morgan, Jamie Dimon, has said it repeatedly. And hopefully I'm adding to the chorus in saying this is unsustainable,” Smith cautioned. Smith’s warning comes as congress is embroiled in negotiations over a $1.7 trillion spending bill, a legislative effort aimed at preventing a government shutdown. This bill, and the priorities it reflects, is emblematic of the broader fiscal challenges facing the nation. The top allocations for federal spending are:The United States is in an era of fiscal turbulence, confronting a staggering figure that, for many, defies comprehension: a national debt exceeding $34.2 trillion.
Loading...
CBO projections show that interest payments on the national debt will surpass both Medicare and defense spending this year. Government Accountability Office (GAO) analyses reveal that America’s fiscal health is declining because debt levels are increasing at a pace that far outstrips economic growth. Large annual budget deficits are what drive debt growth, the agency says, as the federal government borrows to finance spending that exceeds revenue. "Congress and the administration must act to move the nation off the untenable long-term fiscal course on which it is currently operating,” Gene L. Dodaro, Comptroller General of the United States and head of the GAO, said in a statement about America’s debt crisis. “The federal debt level is growing at a rate that threatens the vitality of our nation’s economy and the safety and well-being of the American people. Both spending and revenue issues need to be addressed as part of a comprehensive long-term plan."
