The Fiscal Challenges of the Post-Obama Era

Real Clear Policy: “As President Barack Obama approaches the end of his time in office, the United States is approaching a fiscal day of reckoning. That’s apparent in two startling reports on the budget outlook released in July that have gone largely unnoticed in a political season dominated by purposeful distractions and peripheral issues.”

“The first is the Obama administration’s mid-session review — an updated budget projection produced each summer by the Office of Management and Budget… This year’s review shows that from 2017 to 2026, the federal government will run a cumulative deficit of $8.8 trillion under current law.”

“The second important budget forecast released last month, from the Congressional Budget Office … A key fact: the U.S. is in the beginning stages of a massive and unprecedented demographic transformation. Between 2010 and 2040, the number of Americans age 65 and older will double, from 41 million to 82 million. In 2000, there were 4.7 working age Americans (ages 20 to 64) for every person 65 or older. By 2040, there will be only 2.6 people of working age for every person 65 or older… This surge of older Americans will swell enrollment in Social Security and Medicare.”

“What’s needed is a plan no politician wants to promote — one that reforms the major entitlement programs to bring promised benefits in line with a realistic expectation of federal revenue over the long-run.”


FavoriteLoadingSave to Favorites
Read previous post:
Political Rhetoric Exaggerates Economic Divisions Between Rural and Urban America

Brookings Institution: "...a close look at the data shows that urban and rural America are not as distant, economically or...