US Federal Debt 6-21-24

An Update to the Budget and Economic Outlook: 2024 to 2034. June 18, 2024 CBO Report 

In CBO’s projections, the deficit totals nearly $2 trillion this year. Large deficits push federal debt held by the public to 122 percent of GDP in 2034. Economic growth slows to 2.0 percent in 2024 and 1.8 percent in 2026 and later years.

The Congressional Budget Office regularly publishes reports presenting its baseline projections of what the federal budget and the economy would look like in the current year and over the next 10 years if laws governing taxes and spending generally remained unchanged. This report is the latest in that series.

Deficits

In CBO’s projections, the federal budget deficit in fiscal year 2024 is $1.9 trillion. Adjusted to exclude the effects of shifts in the timing of certain payments, the deficit amounts to $2.0 trillion in 2024 and grows to $2.8 trillion by 2034. With such adjustments, deficits equal 7.0 percent of gross domestic product (GDP) in 2024 and 6.5 percent of GDP in 2025. By 2027, as revenues increase faster than outlays, they drop to 5.5 percent of GDP. Thereafter, outlays generally increase faster than revenues. By 2034, the adjusted deficit equals 6.9 percent of GDP—significantly more than the 3.7 percent that deficits have averaged over the past 50 years.

https://www.cbo.gov/publication/60039#section2

Comments

The Deficits mentioned above are the difference between spending and revenue each year. The National Debt is the pile up of these deficits. Before 2009, the National Debt was $5 trillion. Now it’s $35 trillion. The US Debt to GDP is the $35 trillion Debt divided by the $25 trillion GDP. The US GDP includes all private, business and government spending.

US Federal spending moved from $4 trillion/year to $6 trillion/year from 2021 to 2024. If Biden wins in November 2024, this will continue and US Federal Government will continue to spend $2 trillion a year more than it takes in revenue. The US National Debt is approaching $35 trillion and will add $2 trillion in deficit spending per year. The US Federal Budget that was approved by Democrats in 2022 has allowed this to happen.

Spending by State and local governments is also at $4 trillion/year. Government GDP is $10 trillion/year and Private Sector GDP is $15 trillion/year. Biden has proposed raising the US Corporate Tax from 21% to 28%.

The Private Sector is the goose that lays the golden eggs that has paid down government debt for 200 years. It is also the sector that families depend on to pay their bills.

The Federal Budget for 2022 included the extra $2 trillion to fund the Climate Change Hoax. The goal is to replace electric power generation with wind and solar, but these are insufficient. The mandate to replace gasoline powered cars with electronic vehicles has failed. They are too expensive and nobody will buy them.

In addition, the Federal spending we need to question is $1.1 trillion for foreign aid, $1.1 trillion for grants to States and $1.1 for grants to non-profits we are funding to support riots on our college campuses and illegals in our cities.

Government schools fail to teach reading writing and arithmetic and vouchers are needed to redirect property taxes back to parents who can find schools that work.

It’s time to re-elect Trump to get us out of this mess. We could balance the budget by cutting the $2 trillion the Democrats added in 2022. We could trim more and begin to reduce the National Debt back to under 100% of GDP.

Norb Leahy, Dunwoody GA Tea Party Leader