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Wednesday, June 17, 2015

Government debt threatens to send U.S. economy into death spiral, CBO warns

Rising federal debt threatens to choke economic growth within a decade, beginning a death spiral that will sap revenue from government programs even as demands grow, forcing the government to borrow even more, Congress‘ budget watchdog said in a frightening report Tuesday.

Budget cuts or tax increases now would help avert that scary scenario, leaving the economy far stronger than it otherwise would be, the Congressional Budget Office said in the starkest warning yet by the independent agency that putting off tough decisions will only make things worse.

The report — the first major one under new CBO Director Keith Hall — also takes aim at some traditional liberal arguments, finding that government investment yields only half the return on investment compared with the private sector and that money transfers to the poor act as “implicit taxes,” keeping them out of the labor force and depressing the economy further.

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4 comments:

Anonymous said...

Everything is fine. We have politicians working for us.

Anonymous said...

Threatens to SEND?? How about the handbasket is picking up speed to its destination!! Thanks Obama.

Anonymous said...

Obama's Plan with George Soros to destroy the USA

Anonymous said...

The same CBO that said Obamacare would lower our premiums by $2,500?

Yeah, that one...