“The FY 2013 budget marks the fourth straight year that President Obama has failed to address America’s entirely unsustainable habit of spending increases and debt accumulation in his budget requests,” said CAGW President Tom Schatz.  “The budget projects spending of $47 trillion over the next 10 years, an increase of 62 percent from FY 2011 to FY 2022.  If the President gets his way, real deficit reduction will not begin until FY 2018, two years after he has left office.  Even if Congress agrees to stick to that plan, which is unlikely, the deficit will be still be $704 billion in FY 2022 and gross federal debt will have climbed to $25.9 trillion.” Continue reading….

Few now doubt that the U.S. government is rushing headlong toward a major fiscal crisis. Promised future outlays, mainly for Social Security, Medicare and Medicaid, far exceed projected future revenue, and the total federal debt continues to grow beyond previous boundaries, says Jeffrey Rogers Hummel, an associate economics professor at San Jose State University.

• The latest estimate by Laurence J. Kotlikoff puts the gap’s present value at the bone-crushing level of $211 trillion, while a more modest estimate from Jagadeesh Gokhale and Kent A. Smetters estimates the gap as of 2010 at $79.4 trillion.
• The Congressional Budget Office’s most recent long-term outlook has federal expenditures (without interest payments) accounting for 35 percent of gross domestic product (GDP), while revenues account for only 20 percent.
• Marc Joffe, a former employee of Moody’s Analytics, projects that by 2040 the national debt will have already reached more than 180 percent of GDP.

Continue reading from NCPA…

The federal government is spending more per household than ever before. Since 1965, spending per household has grown by nearly 162 percent, from $11,431 in 1965 to $29,401 in 2010. From 2010 to 2021, it is projected to rise to $35,773, a 22 percent increase. Click here for budget charts…