January 26, 2004
THE SHRINKING DEBT?:
Hill Budget Office Sees 10-Year Deficits (ALAN FRAM, 1/26/04, Associated Press)
Federal deficits will total nearly $2.4 trillion over the next decade, the Congressional Budget Office projected Monday, a worsening of nearly $1 trillion since its last forecast in August.
Which would make the total debt smaller as a % of GDP than it is now, no? Posted by Orrin Judd at January 26, 2004 2:32 PM
Comments
Probably true. That would represent a 33% rise in the national debt over ten years, which corresponds to 3% annual growth. So the economy would have to grow at least 3% annually to keep the ratio stable.
But the big problem isn't over the next ten years, it's ~2040 after the Baby Boom has retired.
Posted by: pj at January 26, 2004 3:06 PM