Contact Us
Make My Homepage

Bleak Long-Term Budget Outlook For Federal Government

The Congressional Budget Office is again warning that the government’s mounting debt problems threaten to swamp the economy unless policymakers move to arrest out-of-control deficits.

Flickr User 401K

The national debt would balloon to almost equal the size of the economy after a decade and would swell to twice the size of the economy in 25 years, the CBO says, assuming existing tax and spending policies stay in place.

An alternative would be to have Bush-era tax cuts expire and let a wave of automatic spending cuts simultaneously hit the economy in January, which the CBO says would toss the economy back into a brief recession.

But while shocking the economy in the short term, the steps would have long-run benefits in shrinking the national debt when measured against the economy.

 

(Copyright 2012 by The Associated Press.  All Rights Reserved.)

Best of NJ 101.5

Recommended For You

Best of the Web

Leave a Comment

It appears that you already have an account created within our VIP network of sites on . To keep your personal information safe, we need to verify that it's really you. To activate your account, please confirm your password. When you have confirmed your password, you will be able to log in through Facebook on both sites.

Forgot your password?

*Please note that your prizes and activities will not be shared between programs within our VIP network.

It appears that you already have an account on this site associated with . To connect your existing account just click on the account activation button below. You will maintain your existing VIP profile. After you do this, you will be able to always log in to http://nj1015.com using your original account information.

*Please note that your prizes and activities will not be shared between programs within our VIP network.

Please fill out the information below to help us provide you a better experience.

(Forgot your password?)

Not a member? Sign up here

Sign up for New Jersey Insiders quickly by connecting your Facebook account. It's just as secure and no password to remember!

Sign up to have exclusive New Jersey Insiders contests, events, coupons, presales, and much more delivered to you for FREE.