Put another way: Medicare and Social Security remain on track to crowd out other spending, slow economic growth and leave the government paying more in interest costs — 5 percent of GDP by 2038, compared with an average of 2 percent over the past 40 years. Just to keep pace, the government would have to tax more and more, or cut more and more, or both. The longer policymakers wait to address these issues, the harder it will be, not least because the interest will keep piling up.By 2038, everybody in Washington will have succumbed to Keynesian mortality, so just keep kicking that can/bucket.
Wednesday, September 25, 2013
There goes the CBO using that phrase again. WashPost: "The debt crisis deserves a serious response."