GAO: Public Debt Will Surpass WWII Highs Within 10 Years

Stephen Keen / November 17, 2010

The Government Accountability Office (GAO) has released yet another dire warning about the nation’s long-term fiscal condition. The report—an annual update of long-term budget simulations—projects that debt held by the public will likely exceed the historical high within 10 years.

What was once viewed by many as a distant budget imbalance has suddenly become a near-term crisis. Unfortunately, simply ignoring the issue—the action of choice for most lawmakers to date—exacerbates the problem. The GAO notes the urgency of the situation:

With the passage of time the window to address the long-term challenge narrows and the magnitude of the required changes grows. The federal government faces long-term fiscal pressures that predate the economic downturn and are driven on the spending side largely by rising health care costs and an aging population. GAO’s simulations show continually increasing levels of debt that are unsustainable over the long-term. (more…)