The Resource Economic impacts of waiting to resolve the long-term budget imbalance

Economic impacts of waiting to resolve the long-term budget imbalance

Label
Economic impacts of waiting to resolve the long-term budget imbalance
Title
Economic impacts of waiting to resolve the long-term budget imbalance
Creator
Contributor
Subject
Genre
Language
eng
Summary
Under current policies, the aging of the U.S. population and increases in health care costs will almost certainly push up federal spending significantly in coming decades relative to the size of the economy. Without changes in policy, spending on the government's major mandatory health care programs--Medicare, Medicaid, the Children's Health Insurance Program, and health insurance subsidies to be provided through insurance exchanges--as well as on Social Security will increase from the present level of roughly 10 percent of the nation's output, or gross domestic product (GDP), to about 16 percent over the next 25 years. If revenues remain at their past levels relative to GDP, that rise in spending will lead to rapidly growing budget deficits and mounting federal debt. In June 2010, the Congressional Budget Office (CBO) issued long-term budget projections under two scenarios that reflected different assumptions about future policies for revenues and spending. The extended-baseline scenario was based on the assumption that, by and large, current law would continue without change. Under that assumption, revenues would climb to a higher share of GDP than has typically been seen in recent decades. Even so, federal debt held by the public would rise from 62 percent of GDP at the end of fiscal year 2010 to about 80 percent of GDP by 2035. Only once before in U.S. history--during and shortly after World War II--has federal debt exceeded 50 percent of GDP. CBO also prepared budget projections under an alternative fiscal scenario, which incorporated several changes to current law that are widely expected to occur or that would modify some provisions of law that might be difficult to sustain for a long period. Under that scenario, debt would soar above its historical peak (about 110 percent of GDP) by 2025 and continue climbing thereafter. To prevent debt from rising to unsupportable levels, policymakers would eventually have to restrain the growth of spending, raise revenues significantly above their historical share of GDP, or pursue some combination of those two approaches. Addressing the long-term budget imbalance would, at a minimum, require stabilizing the ratio of debt to output. In deciding when and how to do that, an important consideration is, what are the costs of delay?
Member of
Cataloging source
GPO
http://bibfra.me/vocab/lite/collectionName
HeinOnline U.S. Congressional Documents Library
http://library.link/vocab/creatorName
Page, Benjamin R
Government publication
federal national government publication
Illustrations
illustrations
Index
no index present
LC call number
HJ2051
LC item number
.P335 2010 ONLINE
Literary form
non fiction
Nature of contents
  • dictionaries
  • bibliography
http://library.link/vocab/relatedWorkOrContributorName
  • Santoro, Marika
  • United States
Series statement
Economic and budget issue brief
http://library.link/vocab/subjectName
  • Budget
  • Budget deficits
  • Government spending policy
  • Budget deficits
  • Budget
  • Government spending policy
  • United States
Label
Economic impacts of waiting to resolve the long-term budget imbalance
Instantiates
Publication
Note
  • Title from title screen (viewed on Dec. 14, 2010)
  • "December 2010."
Bibliography note
Includes bibliographical references
Carrier category
online resource
Carrier category code
  • cr
Carrier MARC source
rdacarrier
Color
mixed
Content category
text
Content type code
  • txt
Content type MARC source
rdacontent
Control code
692322023
Dimensions
unknown
Extent
1 online resource (12 pages)
Form of item
online
Media category
computer
Media MARC source
rdamedia
Media type code
  • c
Other physical details
illustrations
Specific material designation
remote
System control number
(OCoLC)692322023
Label
Economic impacts of waiting to resolve the long-term budget imbalance
Publication
Note
  • Title from title screen (viewed on Dec. 14, 2010)
  • "December 2010."
Bibliography note
Includes bibliographical references
Carrier category
online resource
Carrier category code
  • cr
Carrier MARC source
rdacarrier
Color
mixed
Content category
text
Content type code
  • txt
Content type MARC source
rdacontent
Control code
692322023
Dimensions
unknown
Extent
1 online resource (12 pages)
Form of item
online
Media category
computer
Media MARC source
rdamedia
Media type code
  • c
Other physical details
illustrations
Specific material designation
remote
System control number
(OCoLC)692322023

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