According to a recent report from the U.S. Congressional Budget Office (CBO), U.S. debt will again exceed gross domestic product (GDC) again in 2021. And, U.S. debt is expected to continue rising through 2050.
At 10.3 percent of gross domestic product (GDP), the deficit in 2021 would be the second largest since 1945, exceeded only by the 14.9 percent shortfall recorded last year.
The study says that the already growing U.S. deficit has “widened significantly as a result of the economic disruption caused by the pandemic and the enactment of legislation in response.”
Of note, the CBO bases their growing deficit projects on the assumption that federal revenues will generally increase relative to GDP “as a result of the expiration of temporary pandemic-related provisions, scheduled increases in taxes, and other factors.”
Given current congressional and presidential plans to increase government services and to continue to implement plans that will hurt certain industries that had grown over the last four year – like the oil and gas industries – one wonders if that debt might be even larger than the CBO predicts?
