The CBO’s Latest Long-Term Budget Outlook: Still Terrible

by Patrick Brennan

No surprise, the projections are still for subdued deficits for the next few years, followed by a huge explosion in federal debt and deficits driven not by economic catastrophe, as has been the case over the past few years, but by unsustainable entitlement spending. Here’s the key chart, showing a few years of stability and then a race to World War II levels of debt:

The outlook for Medicare has improved infinitesimally, mainly thanks to a slowdown in general health-care spending, while the outlook for Social Security has worsened substantially, though this is partly just an accounting issue. NRO intern Andrew Smith explains over at the Agenda.