2020 Will Bring First Trillion-Dollar Deficit Not Caused By The Great Recession
The U.S. budget deficit will surpass $1 trillion in fiscal year 2020, according to Congressional Budget Office predictions, and it will represent the first trillion-dollar deficit not caused by the Great Recession, Axios reported.
Unlike the typical circumstances — such as the economic downturn experienced after the 2008 financial crisis — where federal spending is expected to rise, the U.S. economy is enjoying “exceptionally low unemployment and solid economic growth,” the publication noted. Nevertheless, deficits are expected to rise above $1 trillion indefinitely.
CBO projections have the deficit rising to “$1.7 trillion in 2030, with the total debt held by the public rising to 98% of GDP in that time.”
Other projections from the office include:
- “Real economic growth of 2.2% this year and an average of 1.7% through 2030.”
- A rise in unemployment to 4.4 percent over the same period.
- A rise in interest rates to above 3 percent.
- “Inflation is projected to remain at 2%, meaning the estimates are priced for an almost ideal backdrop.”
"Every year we set a new post-war record for debt as a share of the economy, every year the Congressional Budget Office warns that debt is rising unsustainably, and every year our largest trust funds get closer to depleting their reserves," Maya MacGuineas, the president of Committee for a Responsible Federal Budget,said in a statement.
"Ignoring what is staring us right in the face is fiscal malfeasance."