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Saddling the Next Generation with Debt

October 17, 2018

It used to be that many disagreements in Congress centered around a balanced budget. The last time there was a surplus was 1998 – 2001.

Estimates by The Congressional Budget Office (CBO) predicts what the U.S. owes will increase to $15.7 trillion at the end of September which equates to 78% of the country’s Gross Domestic Product (GDP). A decade from now, that estimate rises to 96% of GDP or $28.7 trillion.

If we convert these numbers to the individual taxpayer, the current debt is $164,100 per taxpayer rising to $250,000 by 2028.

U.S. revenue is declining with the recent tax cuts and the Senate introduced a second round of tax cuts though it has not passed.

Maya MacGuineas, president of the nonpartisan Committee for a Responsible Federal Budget, said that when large deficits occur, money is spent on “stupid things.” She continued, “If you don’t have constraints, you don’t think about how to spend wisely.” MacGuineas feels debt is the “most predictable crisis we’ve ever faced.”

If you have debt, consider working with a financial planner or Consumer Credit Counseling Service: https://credit.org/cccs/

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