June 6, 2012- Over the next 25 years, the U.S. debt is expected to increase to twice the size of the economy says a Congressional Budget Office report on Tuesday. The non-partisan report painted a grim picture of the fiscal future of the U.S.
The CBO stated that under the policy that is currently being used, with tax rates upheld and no curbing of entitlements, the portion of debt that will be held by the public would increase from 70% of the GDP to over 100% in just over 10 years.
The Mitt Romney campaign challenging incumbent Barack Obama for the Presidency said the data confirmed that the administration was heading the country towards fiscal ruin. Opponents of the Republican Party countered by saying it showed the generation of revenue, and not just cuts to spending domestically, must be the part of any plan to reining in the debt.
Historical pressures will be placed on the economy over the coming decades because the U.S. population is aging, as the baby boomers born between the mid 1940s and the 1960s, will force an increase in the percentage of people who receive benefits like Medicare and Social Security.
Spending for just programs in health care would soar to nearly 10% of the GDP by 2037 and would have continual increases following that.