Tuesday, January 19, 2016

A Few Sentences & 2 Pictures From Today's CBO Report

In 2016, the federal budget deficit will increase, in relation to the size of the economy, for the first time since 2009, according to the Congressional Budget Office’s estimates. If current laws generally remained unchanged, the deficit would grow over the next 10 years, and by 2026 it would be considerably larger than its average over the past 50 years, CBO projects. Debt held by the public would also grow significantly from its already high level.

[F]ewer people will be participating in the labor market than if the economy was operating at its potential.

Potential labor force participation is ... projected to decline as a result of underlying demographic trends and ... federal policies.

The budget deficit increases modestly through 2018 but then starts to rise more sharply, reaching $1.4 trillion in 2026.

Outlays for mandatory programs are projected to rise from their current 13.1 percent of GDP ... to 15.0 percent by the end of the 10-year projection period. That increase is mainly attributable to the aging of the population and rising health care costs per person.