I looked at the Long Term Budget Outlook recently put out by the Congresional Budget Office and the outlook is not good in the eyes of this relatively impartial, definitely experienced group. Here are some of their conclusions.
Some very obvious conclusions: We all know that eventually something needs to be done about spending for we old folks as, through Medicare, Social Security and Medicaid, we'll be taking a larger and larger share of the federal budget. Any rational person knows that the unchecked spending binge we've been on will eventually have to be paid for.
Some conclusions we have to be periodically reminded of: Economic growth alone is unlikely to bring our long-term fiscal position into balance. Even if health costs did not grow as fast, we'd still need to raise taxes unless we cut other areas. Cutting spending on defense, education, transportation and other areas will not be enough to make up for the money being spent on we elders unless there is a change in our tax policies.
Not pleasant thoughts on the first day of a new year.
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