CHART OF THE DAY: Here's America's Nightmare Austerity Scenario - Business Insider
The Congressional Budget Office has released their report on the threat of a fiscal crisis in the U.S. and it makes for informative reading. Most interesting would be the CBO's two conflicting visions for where the country's debt levels are headed, and what actions will need to be taken to prevent a fiscal crisis in either outcome.
According to the CBO, if the government follows its baseline scenario for spending, there will need to be additional cuts to spending of 1% of GDP to prevent an increase in the U.S. debt to GDP ratio in the next 25 years. In the alternative scenario, the government would need to make cuts equal to 5% of GDP.
The baseline scenario is spending under current law. The alternative scenario includes changes to law that are anticipated by the CBO (this includes the extension of the Bush tax cuts and increased Medicare spending).
How do you feel about all those "necessary" spending programs now?