Sunnyskies
02-23-2007, 02:19 PM
Somethings never change --
1. The Nation's Long-Term Fiscal Outlook: January 2007 Update.
GAO-07-510R, February 23.
http://www.gao.gov/cgi-bin/getrpt?GAO-07-510R (http://www.gao.gov/cgi-bin/getrpt?GAO-07-510R)
GAO-07-510R
The Bottom Line: Federal Fiscal Policy Remains Unsustainable
Figure 1: Unified Surpluses and Deficits as a Share of GDP under Alternative Fiscal Policy Simulations
GAO’s current long-term simulations continue to show ever-larger deficits resulting in a federal debt burden that ultimately spirals out of control. Figure 1 shows two alternative fiscal paths. As described below "Baseline extended" builds on the Congressional Budget Office (CBO) baseline—and results over the long term in revenues several points above the 20-year historical average and discretionary spending several points below the 20-year historical average. The modifications in the alternative scenario result over the long term in both revenues and discretionary spending slightly under the 20-year historical average. Although the timing of deficits and the resulting debt build up varies depending on the assumptions used, both simulations show that we are on an unsustainable fiscal path.
GAO’s Long-Term Fiscal Simulations
Since 1992, GAO has published long-term fiscal simulations of what might happen to federal deficits and debt levels under varying policy assumptions. GAO developed its long-term model in response to a bipartisan request from Members of Congress who were concerned about the long-term effects of fiscal policy.
In 1992 GAO said: "The federal budget is structurally unbalanced. This will do increasing damage to the economy and is unsustainable in the long term. Regardless of the approach chosen, prompt and meaningful action is essential. The longer it is delayed, the more painful it will be." These words are as relevant today as when GAO first published
1. The Nation's Long-Term Fiscal Outlook: January 2007 Update.
GAO-07-510R, February 23.
http://www.gao.gov/cgi-bin/getrpt?GAO-07-510R (http://www.gao.gov/cgi-bin/getrpt?GAO-07-510R)
GAO-07-510R
The Bottom Line: Federal Fiscal Policy Remains Unsustainable
Figure 1: Unified Surpluses and Deficits as a Share of GDP under Alternative Fiscal Policy Simulations
GAO’s current long-term simulations continue to show ever-larger deficits resulting in a federal debt burden that ultimately spirals out of control. Figure 1 shows two alternative fiscal paths. As described below "Baseline extended" builds on the Congressional Budget Office (CBO) baseline—and results over the long term in revenues several points above the 20-year historical average and discretionary spending several points below the 20-year historical average. The modifications in the alternative scenario result over the long term in both revenues and discretionary spending slightly under the 20-year historical average. Although the timing of deficits and the resulting debt build up varies depending on the assumptions used, both simulations show that we are on an unsustainable fiscal path.
GAO’s Long-Term Fiscal Simulations
Since 1992, GAO has published long-term fiscal simulations of what might happen to federal deficits and debt levels under varying policy assumptions. GAO developed its long-term model in response to a bipartisan request from Members of Congress who were concerned about the long-term effects of fiscal policy.
In 1992 GAO said: "The federal budget is structurally unbalanced. This will do increasing damage to the economy and is unsustainable in the long term. Regardless of the approach chosen, prompt and meaningful action is essential. The longer it is delayed, the more painful it will be." These words are as relevant today as when GAO first published