The Debt Clock Keeps Spinning: New at Reason

In June, the Congressional Budget Office issued a grim forecast.

Federal debt now equals 78 percent of gross domestic product, the highest since we had just finished fighting World War II. The CBO says that under current policies, it can be expected to “approach 100 percent of GDP by the end of the next decade and 152 percent by 2048. That amount would be the highest in the nation’s history by far.”

The Trump administration pretends that its policies will unleash such rapid economic growth that the treasury will get a flood of new revenue. But as Steve Chapman observes, the administration’s beliefs are at odds with economic reality.

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