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Deficits and Debt CBO estimates a 2020 deficit of $1

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Deficits and Debt CBO estimates a 2020 deficit of $1.0 trillion, or 4.6 percent of GDP. The projected gap between spending and revenues increases to 5.4 percent of GDP in 2030. Federal debt held by the public is projected to rise over the coming decade, from 81 percent of GDP in 2020 to 98 percent of GDP in 2030. It continues to grow thereafter in CBO's projections, reaching 180 percent of GDP in 2050, well above the highest level ever recorded in the United States. Percentage of Gross Domestic Product 6 Projected 4 Primary Deficit or Surplus 2 0 -2 Over the 2020-2030 period, primary deficits-that is, deficits excluding net outlays for interest-are projected to average 2.6 percent of GDP. Over the same period, federal debt and interest rates are both projected to rise, causing net outlays for interest to increase steadily, from 1.7 percent of GDP in 2020 to 2.6 percent of GDP in 2030. -4 Net Interest -6 -8 Total Deficit or Surplus -10 1970 1975 1980 1985 1990 1995 2000 2005 2010 2015 2020 2025 2030
Total Deficits and Surpluses Percentage of GDP 4 Projected Surpluses 2. 0 -2 Deficits as a percentage of GDP are projected to rise from 4.6 percent in 2020 to 5.4 percent in 2030. They exceed their 50-year average throughout that period. -4 Average, 1970 to 2019 (-3.0%) -6 Deficits Average, 2021 to 2030 (-4.8%) -8 -10 1970 1975 1980 1985 1990 1995 2000 2005 2010 2015 2020 2025 2030
6) Find answers in CBO charts: Was federal spending “out of control” in the decade before the Great Recession of 2008? (yes, no): fed spending as a % of GDP was (above, below) its average (%) from 1979-2019. The 2007 deficit was (1%, 3%, 5% of GDP. 4
7) A CBO chart shows that from 2007 to 2009 the deficit as a % of GDP (rose, fell) from _ % to %; the main cause was (Congress, recession); from 2009 to 2015 it (rose, fell) as a % of GDP; the main cause was (Congress, recovery). +
9) A CBO table reports that taxes in 2019 were .5 % of GDP; spending, .0 % of GDP; so the (deficit, surplus) was _.5% of GDP; CBO projects that in 2030, taxes will be .0 % of GDP, and spending, .5% of GDP, so the (def, surp) will be _.5 % of GDP. Gale's Fig 1.4: his plan will make taxes % of GDP and spending _% of GDP in 2030, and both will be % in 2050.