The Nation’s Long-Term Fiscal Outlook April 2007 Update: The Bottom Line: Federal Fiscal Policy Remains Unsustainable GAO-07-983R, June 4, 2007
“As in previous updates, GAO’s current long-term simulations show ever-larger deficits resulting in a federal debt burden that ultimately spirals out of control. For this update we modified the alternative simulation to reflect a return to historical levels of revenue and a more realistic Medicare scenario for physician payments. Although the timing of deficits and the resulting debt build up varies depending on the assumptions used, both simulations show that we are on an unsustainable fiscal path. By definition, what is unsustainable will not be sustained. The question is how and when our current imprudent and unsustainable path will end. At some point, action will be taken to change the Nation’s fiscal course. The longer action to deal with the Nation’s long-term fiscal outlook is delayed, the greater the risk that the eventual changes will be disruptive and destabilizing. Acting sooner rather than later will give us more time to phase in gradual changes, while providing more time for those likely to be most affected to make compensatory changes.”
Sorry, comments are closed for this post.