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Economy
Nation's 'Long-Term Fiscal Outlook Remains Unsustainable,' GAO Says
2009-10-17
(CNSNews.com) - Weaknesses in the economy and financial markets--and the government's response to them--have helped boost federal budget deficits, which reached a record level in fiscal year 2009, the General Accountability Office reported on Thursday.

The situation probably won't improve any time soon: "While a lot of attention has been given to the recent fiscal deterioration, the federal government faces even larger fiscal challenges that will persist long after the return of financial stability and economic growth," the report says.

The GAO says the nation's fiscal challenges are driven by the growth in health care costs as well as demographic trends. It also notes that without reform, Social Security, Medicare and Medicaid will account for a growing share of the economy in coming years.
The GAO has been publishing long-term fiscal simulations since 1992, in response to a bipartisan request from Congress. According to the GAO, lawmakers asked for the projections because they were concerned about the long-term effects of fiscal policy.

Lawmakers were right to be concerned, the latest report indicates: "GAO's simulations continue to show escalating levels of debt that illustrate that the long-term fiscal outlook remains unsustainable," the August-October 2009 assessment said.

Under one GAO scenario that looks ten years ahead, debt held by the public as a percent of Gross Domestic Product is projected to exceed the historical high reached in the aftermath of World War II and grow at a steady rate after that.

The GAO says the nation's fiscal challenges are driven by the growth in health care costs as well as demographic trends. It also notes that without reform, Social Security, Medicare and Medicaid will account for a growing share of the economy in coming years.
Posted by:Fred

#4  1116 days until the 2012 elections.
Posted by: JohnQC   2009-10-17 15:51  

#3  Gee no shit, spending more than you make is bad ya think?

In this little microcosm I know for a fact lowering the cost of living (taxes) increases trade (business), which spreads wealth (wages) and increases civic and state revenue (sales tax). The only loser is the Federal level - surprise, is it starting to make sense now?
Posted by: swksvolFF   2009-10-17 13:28  

#2  Nation's 'Long-Term Fiscal Outlook Remains Unsustainable,' GAO Says

GAO accountants, why do they hate us? What do Rham and the Axe man say?
Posted by: Besoeker in Duitsland   2009-10-17 02:02  

#1  Unemployment officially at 9.8%. The administration warned at the beginning of the year that it'd be 9% if the stimulus wasn't in place.
Posted by: Pappy   2009-10-17 00:44  

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