Friday, September 15, 2006

The Nation’s Long-Term Fiscal Outlook: September 2006 Update

The Bottom Line: Today’s Fiscal Policy Remains Unsustainable

GAO’s current long-term simulations continue to show ever-larger deficits resulting in a federal debt burden that ultimately spirals out of control. The timing of deficits and the resulting debt build up varies depending on the assumptions used, but under either optimistic (“Baseline extended”) or more realistic assumptions, current fiscal policy is unsustainable.

Simulations are not forecasts or predictions. They are designed to ask the question “what if?” GAO’s “what ifs” are that discretionary spending may grow faster or slower, and tax cuts may be renewed or allowed to expire – but in both cases, the Nation’s long-term fiscal future is “at risk.” Under any reasonable set of expectations about future spending and revenues, the risks posed to the Nation’s future financial condition are too high to be acceptable.


Another one of the Bush lies exposed.


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