Just days after President Obama announced that the country’s economic recovery was due to his administration’s “pretty smart policies,” the Congressional Budget Office (CBO) offered a more sobering outlook on our nation’s fiscal path.
The CBO’s latest economic outlook held that we are on an unsustainable fiscal path. Not only has our debt doubled since the financial crisis in 2008, but our unreformed and burgeoning entitlement programs threaten to push the United States to financial ruin. Currently, debt consists of 74 percent of our nation’s gross domestic product (GDP), but CBO projects that our share of the debt will increase to 106 percent in the next 25 years. When our debt becomes larger than our GDP, investors will doubt our willingness or ability to pay our debt obligations, which threatens American credibility and American creditors worldwide. According to the report, federal spending is still a main driver of this unsustainable debt, and has the potential to drive us even more into the red.
House Republicans have been hard at work reigning in excessive and wasteful federal spending under the Obama administration in order to get our debt problem under control while also legislating a pro-growth economic and jobs agenda. The CBO report highlights that doing nothing is not an option. Sadly, under the rule of Leader Harry Reid, the Senate has chosen a course of ambivalence and inaction. Our economy can’t afford such a lack of leadership.