On August 21, the Congressional Budget Office released a document predicting the federal budget and the U.S. economic outlook for the next 10 years. The results are harrowing.
What We Know:
- The document, An Update to the Budget and Economic Outlook: 2019 to 2029, states that the federal budget deficit is $960 billion in 2019. In the past four months, the annual deficit has increased by $63 million.
- Over the next 10 years, the deficit will average $1.2 trillion between 2020 and 2029. This number also increased by $809 billion since May.
- CBO Director, Phillip Swagel said in a statement, “The nation’s fiscal outlook is challenging. Federal debt, which is already high by historical standards, is on an unsustainable course.”
- The document notes two primary reasons for the large deficits. First, the Bipartisan Budget Act of 2019 and second, “supplemental appropriations for disaster relief and border security for 2019.”
- The Bipartisan Budget Act of 2019 resulted in a $1.7 trillion increase to the annual deficit. The law increased spending limits and suspended the debt limit.
- Disaster relief and border security added another $255 billion.
- The document states that the GDP (gross domestic product) is expected to increase by 2.3 percent in 2019, which means the U.S. is experiencing “low unemployment and rising wages.”
- After this year, economic growth is expected to slow down as consumer spending diminishes between 2019-2023.
New trade agreements, legislation, and other changes could shift these predictions.
