Stephanie
Diamond Member
- Jul 11, 2004
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links in article at site
SNIP:
For two months, reporters and lawmakers have ignored a devastating report from the federal government itself, which warns that the nation's current fiscal policy will lead to economic collapse.
The Government Accountability Office (GAO)the personal auditor of President Obama and the federal governmentreleased its assessment of the federal government on January 17, 2013. The report's findings illuminate just how dire America's spending problem is and, therefore, how little the current cuts debated by Congress do to fix it.
The findings of the paper include these excerpts (emphasis added):
The projections in this Report indicate that current policy is not sustainable... Preventing the debt-to-GDP ratio from rising over the next 75 years is estimated to require some combination of spending reductions and revenue increases that amount to 2.7 percent of GDP over the period.
It is estimated that running primary surpluses that average 1.0 percent of GDP over the next 75 years would result in the 2087 debt-to-GDP ratio equaling its level in fiscal year 2012, which compares with primary deficits that average 1.7 percent of GDP under current policies.
It is noteworthy that preventing the debt-to-GDP ratio from rising over the next 75 years requires that primary surpluses be substantially positive on average. This is true because projected GDP growth is on average smaller than the projected government borrowing rate over the next 75 years.
If the primary surplus was precisely zero in every year, then debt would grow at the rate of interest in every year, which would be faster than GDP growth.
The differences between the primary surplus boost starting in 2023 and 2033 (3.2 and 4.1 percent of GDP, respectively) and the primary surplus boost starting in 2012 (2.7 percent of GDP) is a measure of the additional burden policy delay would impose on future generations. Future generations are harmed by a policy delay of this sort, because the higher the primary surplus is during their lifetimes the greater the difference is between the taxes they pay and the programmatic spending from which they benefit.
While President Obama and his media allies boast from their ivory towers that America doesnt have a spending problem but rather a health-care problem, they are sweeping reality under the rug and spouting lies to the American people.
This is the reality: when President Obamas personal auditor says the federal government has a spending problem, it indeed has a spending problemand one that is growing rapidly.
all of it here
GAO Report: Obama's Policies 'Not Sustainable'
SNIP:
For two months, reporters and lawmakers have ignored a devastating report from the federal government itself, which warns that the nation's current fiscal policy will lead to economic collapse.
The Government Accountability Office (GAO)the personal auditor of President Obama and the federal governmentreleased its assessment of the federal government on January 17, 2013. The report's findings illuminate just how dire America's spending problem is and, therefore, how little the current cuts debated by Congress do to fix it.
The findings of the paper include these excerpts (emphasis added):
The projections in this Report indicate that current policy is not sustainable... Preventing the debt-to-GDP ratio from rising over the next 75 years is estimated to require some combination of spending reductions and revenue increases that amount to 2.7 percent of GDP over the period.
It is estimated that running primary surpluses that average 1.0 percent of GDP over the next 75 years would result in the 2087 debt-to-GDP ratio equaling its level in fiscal year 2012, which compares with primary deficits that average 1.7 percent of GDP under current policies.
It is noteworthy that preventing the debt-to-GDP ratio from rising over the next 75 years requires that primary surpluses be substantially positive on average. This is true because projected GDP growth is on average smaller than the projected government borrowing rate over the next 75 years.
If the primary surplus was precisely zero in every year, then debt would grow at the rate of interest in every year, which would be faster than GDP growth.
The differences between the primary surplus boost starting in 2023 and 2033 (3.2 and 4.1 percent of GDP, respectively) and the primary surplus boost starting in 2012 (2.7 percent of GDP) is a measure of the additional burden policy delay would impose on future generations. Future generations are harmed by a policy delay of this sort, because the higher the primary surplus is during their lifetimes the greater the difference is between the taxes they pay and the programmatic spending from which they benefit.
While President Obama and his media allies boast from their ivory towers that America doesnt have a spending problem but rather a health-care problem, they are sweeping reality under the rug and spouting lies to the American people.
This is the reality: when President Obamas personal auditor says the federal government has a spending problem, it indeed has a spending problemand one that is growing rapidly.
all of it here
GAO Report: Obama's Policies 'Not Sustainable'
