U.S. National Debt Is Likely to Nearly Double to 202% of GDP by 2051, CBO Projects

The federal debt is projected to almost double to 202% of gross domestic product by 2051, the Congressional Budget Office said Thursday, reflecting rising costs for healthcare and debt service.

The U.S. economy is projected to grow 1.8% a year during the next three decades, up from the 1.6% forecast the nonpartisan agency made in September, as the CBO now expects a smaller impact from the coronavirus pandemic. Growth averaged 3.1% a year from 1951 through 2020, the CBO said.

The federal debt is projected to be 102% of the gross domestic product in 2021. It has exceeded that level only twice before in U.S. history, in 1945 and 1946, following a surge in federal spending as a result of World War II.

The forecasts don’t take into account the $1.9 trillion in federal spending proposed by President Biden and backed by Democrats, who narrowly control the House and Senate. Democrats say the measure is needed to ease pain from the business closures and job losses caused by the pandemic and related restrictions on economic activity.

Congressional Republicans, meanwhile, object to the size of the stimulus package and have pointed to growing budget deficits and debt as a reason to keep spending in check as they argue the economy is already poised for stronger growth.


https://www.wsj.com/articles/u-s-national-debt-is-likely-to-reach-a-record-202-of-gdp-by-2051-cbo-projects-11614884400?fbclid=IwAR27D4whXLrdFLAfwT6Nzllqh2TRFIDuJC_ARP5179IpntKCIGZ5pFyFN9A


And now we are seeing the bond market in turmoil as everyone is bracing for inflation, which will make debt even more expensive. For governments and citizens alike.

To compound matters the stimulus package will stimulate the economy even more, and add to the national debt even more.

Then we want to increase the minimum wage, and transfer student debt to the deficit.

It's a perfect storm to bring us back to 1978.

We're not only the wealthiest nation on earth, but the wealthiest that has ever been, anywhere.  To boot, interest is at an all-time low.

Where are the capitalists going to go to get a better deal?  

Original Quill wrote:We're not only the wealthiest nation on earth, but the wealthiest that has ever been, anywhere.  To boot, interest is at an all-time low.

Where are the capitalists going to go to get a better deal?  

We're only wealthy if you don't factor in our debt.

Interest rates are low but have you seen the bond market the past few weeks?

I repeat, where are the capitalists going to go?

Original Quill wrote:I repeat, where are the capitalists going to go?

And we are just about to add another 2 trillion.

I don't know where they go, nor is it relevant.