Wednesday, January 2, 2013
Chart Of Fiscal Cliff Deal's Negligible Impact On National Debt
negligible impact on deficit reduction, the following chart should be added to the list of sure-to-be charts of the year of 2013. This one shows that, despite all of the bickering and worry associated with the debt deal, the national debt will continue to grow not only in real terms, but also as a percentage of GDP. In fact, the amount of annual deficit reduction, $600 billion over 10 years, is so infinitesimally small as compared to the national debt that a new debt projection trendline would look exactly the same as the current one.
Another takeaway from this chart: the CBO's debt projections have been getting larger and larger with each revision. If the CBO is currently projecting 100%+ debt-to-GDP 10 years from now, does that mean that in 2 years it will project 120%+ for 2023? Get your debt on, Congress!