CBO and Budget

The CBO has published a report on the Budget and losses going forward.

Going forward we see an ever increasing deficit as a percent of GDP.

 The above are the outlays as a percent of GDP. This of course assumes the GDP grows as projected. If it does not, which seems to be the case going forward the numbers explode. Worse look at Net Interest. Now it is just above 1% growing to 2.6%. If we have slower GDP growth and higher interest rates then this could easily double or worse!

Now the components of Federal Spending are as follows:

These are % Projected GDP which as we have said is very uncertain. The spending amounts are not! In Fact they most likely are more. Note:

1. Net Interest is exploding
2. Social Security is not too bad.
3. Health Programs are going nuclear!
4. All else is dropping, especially Military

Finally look at age groups.

The percent over 65 is growing considerably and the number over 75 is truly explosive. Imagine 60 million people over 75 who have smoked, drank, and were morbidly obese and what their future costs are!