Tempting Fate: The Federal Budget Outlook

Bill Gale and Alan Auerbach find that the federal budget outlook has changed little over the past year. Deficits will exceed 6 percent of GDP at the end of the decade, even with strong economic growth, and the debt-GDP ratio will reach nearly 100 percent by 2021. Only significant changes in entitlement and health spending will improve the situation. See their paper here.

View the entire paper as a PDF.