Yesterday, the CBO (Congressional Budget Office) has come out with a scary report about the US financial outlook. If we don’t reform our national spending habits, we are headed to a situation like we see in Greece. On top of that, raising taxes on people in a bad economy won’t help stimulate our economy. Check out Paul Ryan’s plan projection graph below.
Over the past few years, the federal government has been recording budget deficits that are the largest as a share of the economy since 1945. Consequently, the amount of federal debt held by the public has surged. By the end of this year, CBO projects that the federal debt will reach roughly 70 percent of gross domestic product (GDP), the highest percentage since shortly after World War II.