The non-partisan Congressional Budget Office (CBO) released its budget and economic projections for the next 10 years, which predict that under current law, America’s debt will exceed $1 trillion for the fourth consecutive year, and the U.S. will continue to see poor economic growth and continued high unemployment, topping 9 percent next year.
“This report is a very clear economic alarm,” said Rep. Bill Huizenga, MI-02. “It’s time to listen to the American people, the House, and now CBO - we’re in dire straits, and we must act now. The House has offered numerous solutions and ideas to help change these policies. Yet the Senate still hasn’t passed a budget to rein in such outrageous government debt – it’s been 1,007 days, nearly the same four years that we’ve seen more than $1 trillion in deficit spending. The President has failed to lead by example, with no honest plan to help get our country’s economy and employment numbers back on track. When are they going to stop hitting ‘snooze’ on America’s economic security?”
Key facts from the CBO’s Budget and Economic Outlook:
Real economic growth is projected to be to 2.2 percent in 2012, falling to 1.0 percent in 2013;
The unemployment rate is expected to reach 8.8 percent in 2012, 9.1 percent in 2013, and 8.7 percent in 2014;
The FY2012 budget deficit is projected to equal $1.079 trillion, the fourth consecutive year with the budget deficit above $1 trillion;
Total debt is projected to reach $16 trillion in 2012, with debt held by the public to eclipse the $11 trillion mark in 2012 (72.5% of GDP);
Debt held by the public is projected to reach $15.3 trillion by 2022.
Table 1: CBO's 'Current-Law' Projections of Spending, Revenues, and Deficits, 2012-2022
In Billions of Dollars
2012
2013
2014
2015
2016
2017
2018
2019
2020
2021
2022
2013 - 2022
Revenues
2,523
2,988
3,313
3,568
3,784
4,039
4,243
4,456
4,680
4,926
5,181
41,179
Outlays
3,601
3,573
3,658
3,836
4,086
4,259
4,439
4,714
4,960
5,205
5,520
44,251
Deficits
-1,079
-585
-345
-269
-302
-220
-196
-258
-280
-279
-339
-3,072
Debt Held by the Public
11,242
11,945
12,401
12,783
13,188
13,509
13,801
14,148
14,512
14,872
15,291
N/A
As a Percentage of Gross Domestic Product (GDP)
Revenues
16.3
18.8
20.0
20.2
20.2
20.5
20.5
20.6
20.7
20.9
21.0
20.4
Outlays
23.2
22.5
22.1
21.8
21.8
21.6
21.5
21.8
21.9
22.0
22.4
21.9
Deficits
-7.0
-3.7
-2.1
-1.5
-1.6
-1.1
-0.9
-1.2
-1.2
-1.2
-1.4
-1.5
Debt Held by the Public
72.5
75.1
74.8
72.6
70.5
68.5
66.8
65.5
64.2
63.0
62.0
N/A
Source: Congressional Budget Office: The Budget and Economic Outlook
