On February 4th, 2014; the Congressional Budget Office (CBO) released its non-partisan report detailing the economic outlook for America over the next ten years. The next day, CBO Director Doug Elmendorf testified before the House Budget Committee and exposed a tidal wave of national debt compounded with less workers, more government dependents and less revenue.
In fact, without major tax and spending reforms, America will add $1.5 Trillion dollars to the national debt every year for the next decade. Our current national debt is $17.5 trillion dollars, and according to the CBO in ten years our national debt will be $32.5 Trillion dollars, at a minimum.
Quantifying our national debt to America’s Gross Domestic Product (GDP) paints a grim picture for the future.
As of 2013, America’s GDP was $16.72 trillion dollars. Our public debt was 71.8% of GDP in 2013, and 70% in 2012. Pictured right is the 2013 GDP for America, China, Japan, Germany, Russia and Australia.
Forcing a reality check on Washington D.C. may help avert the coming doom. Democrats took control of Congress in 2006, and spending sharply increased result of redistributing wealth via the private market with Fannie Mae and Freddie Mac. Contrary to popular belief, starting in 2001, George Bush warned Congress at least 22 times about the pending collapse result of the Director of Housing and Urban Development, Andrew Cuomo’s sub-prime loan mandate in 1998. Afterwards, Bill Clinton repealed Glass Steagall, allowing the worthless loans to poison the market, creating a paper tiger primed for collapse. Clinton accepted responsibility in 2008, which might explain Cuomo’s sharp criticism of Conservatives in New York State. All the while, Democrats gave Fannie and Freddie billions of dollars of taxpayer money, and in return, Fannie and Freddie invested heavily in Democrat political races. Where most people are from, that practice is called money laundering.
Now, the CBO reports a much bigger problem, as not only has the federal government taken over the housing industry – 80% of all home loans are owned by Fannie and Freddie – but the federal government is also taking over healthcare, about 17% of the market.
Total spending on healthcare – both private and public – was 9% of GDP in 1980, and after Obamacare was forced by a Democrat super majority in 2010, total spending on healthcare has skyrocketed to 17.9% of GDP. Even with more spending on healthcare, the cost still remains more than before Obamacare, not saving each individual $2,500 per year, but costing over $7,500 more per year – a $10,000 per year spike per individual.
Then Doug Elmendorf dropped a bombshell, and politicians still have not stopped scrambling as result. Below is audio of Doug Elmendorf testifying before Paul Ryan and the House Budget Committee.
Obamacare actually encourages more young people to not work. While Democrats try to sell Americans that “not working is a good thing”, allowing entry level workers to drop-out of the labor force and still retain healthcare, they ignore the obvious point. Who pays for everything if no one is working and no one is paying taxes?
With more and more baby boomers retiring and enrolling in Medicare, that was already cut by Obamacare to the tune of $500 billion, the government needs to ensure more revenue, not less. Yet, the CBO reports that up to 2.5 million people will choose not to work, and therefore, will not pay taxes, adding to revenue. Instead, they will add to the massive amount of retirees and become dependent of government revenue, which according to the CBO is shrinking result of Obamacare.
Even some Democrats are waking up to the dire situation. Below is audio of Rep. Kathy Castor, a Democrat from Florida, questioning the CBO about the inability of the federal government to continue payment for social-programs without serious tax reform. Programs like education, and research & development, will lack funding as our country moves closer and closer to bankruptcy.
However, the Democrats answer for the clear shortfall is to raise the minimum wage, after all, “if entry-level people are making more money, then they will pay more taxes, and add to revenue.” The non-partisan CBO then reported that raising the minimum wage would shrink the workforce by another 1 million people, creating even more government dependents, relying on even more non-existent government revenue and adding to the skyrocketing debt.
Rejecting the American ideal of self-reliance and self-government, Washington D.C. is now only seemingly interested in keeping people dependent on a system that is out of money. Keeping people from entering the workforce, making their own money and earning benefits while paying taxes and adding to revenue is seemingly not something Democrats want to accomplish. Instead they would rather keep people dependent on a government that, according to the CBO, is facing bankruptcy and another great depression in only a few short years.
Below is a recent radio show, and underneath is the CBO Report regarding the economic outlook for the next ten years in America.
Conservative Report Radio! Socialism and Economic Demise