Wednesday, June 19, 2024

CBO: An Update to the Budget and Economic Outlook: 2024 to 2034

 See: https://www.cbo.gov/publication/60419

My last forecast is much more optimistic than this one.  They project that Debt Held by the Public will reach 122.4% of GDP by 2034.  I am actually very similar in my forecast of Debt Held by the Public.  They predict it will be $50.7 trillion in 2034 and I predict it will be $50.4 trillion.  The difference is the GDP.  I predict the GDP will be $49.4 trillion in 2034 and they predict it will only be $41.4 trillion.  

There is some limit to Debt Held by the Public to GDP, but we won't know what it is until we reach it.  I think 150% is reasonable, but it could be higher.  In any event, the higher the ratio, the more danger we are in.

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Update:  Also see https://www.crfb.org/papers/trump-and-biden-national-debt


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