(The Hill) The nation's long-term fiscal outlook hasn't significantly improved following the recent agreement between Congress and the White House over tax and spending issues, according to a new analysis.
The "fiscal cliff" deal, combined with the debt-limit agreement of August 2011, only slightly delays the United States reaching debt-to-gross domestic product levels that would damage the economy and risk another fiscal crisis, according to a report from the Peter G. Peterson Foundation released on Tuesday.
At a House Ways and Means Committee hearing last week, lawmakers and budget experts agreed that rising healthcare costs, such as Medicare, must be addressed this year as part of efforts to overhaul the tax code and entitlement programs. Even if the budget sequester is fully implemented, federal debt would still reach 200 percent of GDP within about 28 years.
On top of that, the debt will continue to grow between now and 2022, and will accelerate significantly after that. Debt is now projected to grow from 72 percent of GDP in 2012 to 87 percent in 2022, down only slightly from the 90 percent that was estimated before passage of the most recent deal.
In other words, this president is leading us into the wrong direction. If people think the DOW reaching 14000 points as an indication that the economy is getting better, think again! Common sense will tell you that spending more than what you take in will lead toward bankruptcy. We already saw our credit rating downgraded twice. Soon our debt will be too toxic for other countries to invest.