WASHINGTON, D.C. — In response to the release today of the updated Congressional Budget Office (CBO) report that projects the United States’ budget gap to exceed $1 trillion in 2020, two years sooner than expected, Jason Pye, FreedomWorks Vice President of Legislative Affairs, commented:
“Coming on the heels of last month’s horrendously irresponsible budget deal, which was agreed to by Republican leadership, these CBO projections are unwelcome news for the United States’ fiscal sustainability. By the CBO’s updated projections, the budget deficit is set to hit more than $1 trillion two years sooner than expected. The spending-to-GDP ratio is set to rise nearly as high as it was during the 2009 recession. This will have catastrophic consequences for the United States economy when the debt crisis hits, as interest rates rise and private investment is crowded out.
“Seeing as every budget deal since 2013 has failed to get the United States’ fiscal house in order, Congress will likely keep its head in the sand. But something must be done soon, and that means taking a hard look at mandatory spending, the root cause of the United States’ fiscal woes. Without comprehensive entitlement reform and a willingness by both parties to rein in out of control spending, economic uncertainty is right around the corner, as indicated by today’s updated CBO projections.”