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RE: LeoThread 2024-11-10 03:05

in LeoFinance15 days ago

Part 3/5:

The Congressional Budget Office's (CBO) projections paint a concerning picture for the future. Even with optimistic assumptions, the federal deficit is expected to remain around $2 trillion per year over the next decade, with the entitlement deficit accounting for the majority of this shortfall.

In a scenario where the economy grows at a robust 5% annual rate, the deficit would still remain high, with interest payments on the debt continuing to rise. This suggests that the problem lies not in the overall government spending, but rather in the structural imbalance between entitlement revenues and expenditures.

The Challenges Ahead

Solving this fiscal crisis will require tackling the politically sensitive issues of healthcare and retirement benefits. Previous administrations, such as that of George W. Bush, have attempted to address these problems but have faced significant resistance.

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