Federal Debt Projected to Grow by Nearly $10 Trill
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Posted On: 01/26/2017 12:05:58 AM
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Federal Debt Projected to Grow by Nearly $10 Trillion Over Next Decade
The deficit is expected to shrink this fiscal year and next before increasing in 2019 and beyond. Deficits would cumulatively total $9.4 trillion from 2018 to 2027, the budget office projects. By 2023, the deficit would reach $1 trillion, and in 2027, a projected $1.4 trillion deficit would be equal to 5 percent of the economy.
Most economists believe that deficits are helpful when economies are in recession, but some say that when they are near full employment, as the United States economy is now, deficits should be kept below 3 percent of the economy to avoid a drag on investment — or worse, a financial crisis.
The Congressional Budget Office’s budget and economic outlook said that the share of debt held by the public was expected to reach 89 percent of gross domestic product in 2027. That level could increase the risk of a financial crisis and raise the possibility that investors will become skittish about financing the government’s borrowing, some economists say, although many countries have far higher debt levels.
https://www.nytimes.com/2017/01/24/us/politic....html?_r=0
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