The U.S. government has set the nation on course for a brutal economic reality at some point in the not-too-distant future.
The Government Accountability Office (GAO) offers this assessment in its Fiscal Outlook & The Debt::
The federal government’s debt as a share of Gross Domestic Produce (GDP) is growing unsustainably because revenue and spending are fundamentally imbalanced over the long term, according to GAO’s simulations of the federal fiscal outlook.
The increases in spending shown in the simulations are driven by an aging population, rising health care costs, and net interest. Net interest is equal to the amount of interest paid minus the amount received. The government pays and collects interest in various ways. For example, net interest outlays are dominated by the interest paid to holders of federal debt securities that the Department of the Treasury issues to the public on the federal debt.
Further, the growing gap between revenue and spending will limit the federal government’s flexibility to address future challenges.
These key points are illustrated by GAO’s long-term simulations projecting federal deficits and debt under different sets of policy assumptions. A simulation is a hypothetical—a “what if?” Since 1992, GAO has periodically run two simulations of the federal budget that illustrate the potential implications of different policy choices.
GAO also publishes simulations of long-term fiscal trends for the state and local government sector, which likewise faces long-term fiscal pressures.
Meanwhile, David Stockman offers these equally grim contributing factors:
US Government Entitlements – The Sixth Biggest Economy on Earth ZeroHedge – July 30, 2016
Excerpted from David Stockman’s forthcoming book “Trumped! A Nation On The Brink… And How To Bring It Back”,
Because the main street economy is failing, the nation’s entitlement rolls have exploded. About 110 million citizens now receive some form of means tested benefits. When social security is included, more than 160 million citizens get checks from Washington.
The total cost is now $3 trillion per year and rising rapidly. America’s entitlements sector, in fact, is the sixth biggest economy in the world.
Yet in a society that is rapidly aging to the tune of 10,000 baby boom retirees per day, this 50% dependency ratio is not even remotely sustainable. As we show in a later chapter, social security itself will be bankrupt within 10 years….
America has a powerful economic option ‘up and ready to go.’
One that will fire up the economy and dramatically reduce dependency on government.
It will restore economic liberty by restoring resource allocation to U.S. citizens, thereby largely eliminating government-dominated ‘allocation distress.’
The Leviticus 25 Plan is a dynamic economic initiative providing direct liquidity benefits for American families, while at the same time scaling back the role of government in managing and controlling the affairs of citizens. It is a comprehensive plan with long-term economic and social benefits for citizens and government.
The inspiration for this plan is based upon Biblical principles set forth in the Book of Leviticus, principles tendering direct economic liberties to the people.
The Leviticus 25 Plan 2017 – $75,000 per U.S. citizen The Leviticus 25 Plan 2017 (1598)