A recent article in the Wall Street Journal gives three reasons the deficit is worse than we think:
- As interest rates “normalize,” or rise from the current average of 2.5% to a more normal average of 5.7%, our annual interest payment on the national debt will increase by approximately $420 billion in 2014, up to $700 billion by 2020.
2. The government’s growth predictions for the economy are much higher than what financial experts believe we can expect after a severe economic downturn.
3. Obamacare will cost much more than promised. By 2014, it will cost roughly $74 billion per year over the estimated amount. That will rise to about $85 billion more per year than predicted by 2019.
Read more about the looming crisis here...
And click here to read: CBO Outlook On Long-term Debt Worsens