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CBO warns federal debt could double GDP by 2037

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    Bleak long-term budget outlook unless something is done

  • Duration 3:28
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And 34 and out here in new York -- dire report about the country's financial future we -- fifteen trillion dollar debt at the moment.

According to Congressional Budget Office the CBO that number will double over the next fifteen years.

And grow to twice the size the entire economy by 2037.

And less serious changes are made.

Doug Holtz -- a former director of the CBO president of the American action forum and Doug welcome back in the morning W.

Debt sixteen trillion at 32 trillion -- when he 25.

Is that the course were on.

That that is sadly the course you're on now this is a vivid reminder just how dangerous things are are already the research indicates the US is paying -- a det penalty of slower growth maybe a percentage point a year.

That's about a million jobs -- to double that.

This is a very dangerous strategy indeed what a terrible legacy for the generations that follow.

Where people -- -- It's it really is a terrible legacy in the CBO report says that if we continue on this track up not just a decade -- a little bit further.

We're gonna have an economy that's 15 smaller than it should be and that's the worst legacy we -- leave.

Lower standards of living.

Less capacity to to spend money in the private sector a big burden of debt the boat so we really do need to to change the spending programs.

Get -- entitlement programs under control and do it quickly okay now federal debt 2000 -- to twelve years from now debt to GDP.

93%.

-- -- -- 22.

Ten years after that's when he 3257%.

2037200%.

Of GDP how do you sustain that I had how you run a country that -- You you don't arm and the CEO says very clearly were on a course that leads us straight to a Greek style financial crisis.

One -- amazing little tidbits in there is that if we continue down this trajectory.

Interest will soon be the biggest federal spending program it'll be bigger than Social Security.

Bigger than Medicare that are bigger than Medicaid so.

We can't do that we have to win we are ridiculous or are and it with regard to change course -- -- just doing it -- with Allen in Tucker about what Bill Clinton had a series.

You -- you need to listen to him in what way.

The president's exactly right that'll be an enormous mistake.

To allow the bush tax cuts to sunset at the end this year economy's weak and that's a recipe for recession.

Those tax -- should be extended.

For at least a year and then a fundamental tax reform that is far more pro growth -- competitive.

Is the next step in getting this economy go to perhaps that happens at a prior to the election or perhaps the lame duck period afterwards but -- -- it's not for a year.

Or or make them permanent is a is a significant debate.

It's obviously a big debate I I think the reality is we needed tax reforms so that debate misses the the fundamental problem.

And I think got to do this electric than before the election we're going to start to see the negative impact.

Of a looming increase in taxes even before the election you and that's a danger we can't afford think this congress can do that.

Are are they capable for a moment.

Com them the only thing we need is for the president to step up and take the leadership on this all that has stopped that so far is the senate.

Majority leader Harry Reid it will not take up -- bill that extends the tax cuts if the president said this is important to the economy is something we need to do.

It would happen room that would be a big campaign moment to five years and counting them.

But we'll -- can thank you we'll speak again -- you.

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