"Debt will eclipse the size of our entire economy within a decade"
WASHINGTON, June 22, 2011 /PRNewswire-USNewswire/ -- Steve Bell, Senior Director of the Economic Policy Project at the Bipartisan Policy Center (BPC) issued the following statement today regarding the release by the Congressional Budget Office (CBO) of its latest projections for the United States' long-term budget outlook:
"The CBO report illustrates that, under likely policies, debt will eclipse the size of our entire economy within a decade. Those of us who have been following fiscal policy are not at all surprised by these figures. We have been warned time and again about our growing federal debt burden, but to date, no significant legislative action has been enacted to address this monumental problem.
"Many of our leaders have been hoping that if they avoid the difficult decisions for long enough, the problem will fix itself – today's numbers once again disprove this theory. Our national debt continues to rise at an unprecedented and unsustainable rate. Spending remains near its highest point as a percentage of the economy over the past 60 years, while revenues similarly remain near their lows. Clearly, this mix of fiscal policy is impossible to maintain.
"Amid all of the doom and gloom contained in this report, however, there have been recent signs of hope. Not only have the president's fiscal commission and BPC's Debt Reduction Task Force released two bipartisan, comprehensive blueprints to prevent our nation's approaching debt crisis, but members of Congress have begun to do the same. Deficit reduction seems to be gaining political traction on the Hill – a rare occurrence in these polarized, partisan times.
"As we move through the summer, Congress must act swiftly on a package to raise the debt ceiling that also includes a down-payment on the deficit reduction plan that our country so urgently needs. The BPC is working with members of Congress to assemble such a plan, and ensure that it is successfully enforced with a mechanism that the BPC has developed, called SAVEGO. Only decisive action to combat our skyrocketing debt and reassure our creditors can secure our future economic prosperity."
About the Bipartisan Policy Center:
Founded in 2007 by former Senate Majority Leaders Howard Baker, Tom Daschle, Bob Dole and George Mitchell, the Bipartisan Policy Center (BPC) is a non-profit organization that drives principled solutions through rigorous analysis, reasoned negotiation, and respectful dialogue. With projects in multiple issue areas, the BPC combines politically balanced policymaking with strong, proactive advocacy and outreach. For more information, please visit our website: www.bipartisanpolicy.org.
SOURCE Bipartisan Policy Center