A new paper by Heritage budget guru Brian Riedl titled Ã¢â‚¬Å“Entitlement-Driven Long-Term Budget Substantially Worse Than Previously ProjectedÃ¢â‚¬Â lays out the stark situation facing our nation’s fiscal and economic future. The paper is an important rebuke to the Congressional Budget Office (CBO) and its ‘rosy’ estimates that the fedgov will consume 33% of the economy in 2050 (up from 20% today). With more realistic assumptions about interest rates and future levels of defense spending, Heritage projects that federal spending reaches 44% of GDP by 2050 and 73% by 2050. In other words, current spending trends will destroy the American economy and free enterprise system. Yet, Congress continues to refuse to address the main drivers of this looming collapse– Social Security and Medicare– while instead creating new benefits and running up greater deficit spending bills. The risk America faces is staggering, and the complete failure of our political class to address it is beyond belief.
This paper is free at http://www.heritage.org/Research/Budget/bg1897.cfm