US National Debt to Reach $19 Trillion by 2033: Congress Must Act Now to Avoid Default
By The United States is on track to add nearly $19 trillion to its national debt over the next decade, $3 trillion more than previously forecast, the nonpartisan Congressional Budget Office (CBO) said Wednesday.[0] The agency pointed to rising costs for interest payments, veterans' health care, retiree benefits, and the military as the main drivers of the increased projected deficit.
The CBO projects that the annual total budget deficit will double from $1.41 trillion in 2023 to $2.851 trillion in 2033, while annual net interest expenses will rise from $640 billion in 2023 to $1.429 trillion in 2033.[1] This would bring the total U.S. debt held by the public to 118 percent of gross domestic product (GDP) by 2033.[2]
The government is currently using “extraordinary measures” to prevent a default, but those measures are expected to expire between July and September, according to CBO’s analysis. This means Congress must reach a debt agreement before then to avoid a potentially catastrophic default.
House Republicans have said they will not raise the debt ceiling unless the government also cuts spending, while Democrats insist that extending the debt ceiling is nonnegotiable.[3]
The CBO has warned that the timing of when the government will no longer be able to pay its debt obligations fully “will fall between July and September 2023.”[4] This means that Congress must act soon to prevent a default on the national debt, a situation that could have devastating economic and political consequences.
0. “U.S. on track to add $19 trillion in new debt over 10 years as baby boomers retire” redlakenationnews.com, 17 Feb. 2023, https://www.redlakenationnews.com/story/2023/02/17/politics/us-on-track-to-add-19-trillion-in-new-debt-over-10-years-as-baby-boomers-retire/112043.html
1. “Latest Debt and Deficit Projections Warrant a Full-Scale Freakout” Bacon's Rebellion, 16 Feb. 2023, https://www.baconsrebellion.com/wp/latest-debt-and-deficit-projections-warrant-a-full-scale-freakout/
2. “The Budget and Economic Outlook: 2023 to 2033” Congressional Budget Office, 15 Feb. 2023, https://www.cbo.gov/publication/58848
3. “Will Social Security Payments Stop Now That the Debt Ceiling Has Been Reached?” AOL, 19 Feb. 2023, https://www.aol.com/finance/government-shutdown-2023-social-security-153028932.html
4. “News” Bartlesville Radio, 16 Feb. 2023, http://bartlesvilleradio.com/pages/news/372002023/brecheen-reacts-to-cbos-baseline-reportwe-must-course-correct-as-economic-security-is-key-to-our-national-security_0
