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The U.S. faces a critical fiscal situation, with the 12-month rolling deficit
hitting $2.1 trillion in August 2024. This steep increase stems from rising
interest rates, increased spending, and stagnant revenues. According to the
Congressional Budget Office's (CBO) June 2024 outlook, public debt is set to
rise dramatically, from 99% of GDP in 2024 to 122% by 2034. Annual deficits are
expected to climb, fueled by growing costs for entitlement programs like Social
Security and Medicare, alongside rising interest payments, surpassing defense
spending by 2025.
The CBO's projections show that U.S. borrowing costs will skyrocket without
intervention. By 2033, interest payments alone could exceed discretionary
spending, crowding out essential investments. The fiscal trajectory only
emphasizes the need for bipartisan efforts to stabilize the budget, as no action
could lead to severe economic consequences. The CBO calls for carefully
considering tax reform, entitlement adjustments, and expenditure controls to
restore long-term fiscal sustainability.
An Update to the Budget and Economic Outlook: 2024 to 2034 (Congressional Budget Office, 6-24)
Monthly Budget Review: August 2024 (Congressional Budget Office, 9-10-24)
CBO's June 2024 Budget and Economic Outlook (Committee for a Responsible Federal Budget, 8-5-24)
The 12-Month Rolling Deficit Totals $2.1 Trillion in August 2024 (Committee for a Responsible Federal Budget, 9-10-24)