In addition, as a percentage of gross domestic product, or GDP—that’s the size of the U.S. economy–the deficit rises from 5.6% of GDP this year to 6.1% of GDP in 2034.
Let’s put that into context. The CBO says that sincce the Great Depression, deficits have exceeded that level only during and shortly after World War II, the 2007-2009 financial crisis, and the coronavirus pandemic.
So in other words…it’s been rare, but becoming commonplace. And that’s without any negative, black swan event.
A few more points from the CBO report. Over the next 10 years, deficits are predicted to be are about 50 percent larger than their historical average over the past 50 years. Beyond that, the net interest costs incurred through servicing the more than $34 trillion national debt are a major contributor to the deficit, with growth equal to about three-quarters of the increase in the deficit from 2024 to 2034.
It’s just math, people. And we’re getting a failing grade.
