The outlook's Alternative Fiscal Scenario, a policy future built on assumptions about legislative decisions, projects that total debt held by the government will surpass 100% of GDP within the next ten years and sit at a whopping 187% of GDP in 2035.
Federal spending driving this growth comes primarily from entitlement programs. Total government spending is projected to rise to 25.9% of GDP in 2021 and 33.9% of GDP in 2035. Due to slower-than-expected economic performance, the CBO is also projecting lower revenues over the next ten years than they previously had, contributing to the skyrocketing debt and deficit.
This should put an exclamation point on smoldering Democrat plans for a "second stimulus." At this point, there is very little that the U.S. government can afford without making substantial cuts. The GOP's desire to tie a debt limit increase to substantial, meaningful spending cuts seems like a better idea all the time.
On the whole, this is just another warning that the finances of the federal government are absolutely out of control. As Paul Ryan stressed, there's absolute economic disaster for our country just two decades down the line.
For example, the CBO neatly designed a chart showing how harsh spending cuts will have to be to bring our budget to balance - and the more we put it off, the more painful it'll eventually be.
