GAO: Nation's long-term fiscal outlook remains unsustainable

The U.S. Government Accountability Office today released its Fall update on The Federal Government's Long-Term Fiscal Outlook. The prognosis is grim unless our elected officials in D.C. take action soon. From the report: Weaknesses in the economy and financial markets—and the government’s response to them—have contributed to near-term increases in federal deficits, which reached a record level in fiscal year 2009. While a lot of attention has been given to the recent fiscal deterioration, the federal government faces even larger fiscal challenges that will persist long after the return of financial stability and economic growth. GAO’s simulations continue to show escalating levels of debt that illustrate that the long-term fiscal outlook remains unsustainable. In little over 10 years, debt held by the public as a percent of GDP under our Alternative simulation is projected to exceed the historical high reached in the aftermath of World War II and grow at a steady rate thereafter . . . READ MORE