WASHINGTON—Today, the Congressional Budget Office (CBO) released its Budget and Economic Outlook, showing that government spending is projected to total more than $72 trillion over the next decade under current law and that inflation will eat away working Americans’ earnings and purchasing power.
Matthew Dickerson, director of the Grover M. Hermann Center for the Federal Budget at The Heritage Foundation, released the following statement today in response to the report’s findings:
“Congress and the White House have a moral obligation to be good stewards of the American people’s money. Today’s CBO report confirms what most of us already knew—they are failing in that obligation. Government spending is too high, and is only on pace to get worse. This reckless spending is fueling inflation, causing historic price increases on everyday goods, and hurting American families, communities, and the economy.
“This spending is unsustainable. Washington has added $6 trillion in new spending in the last two years alone and raised the national debt to over $30 trillion. CBO projects the Medicare Trust Fund will be depleted by 2030 and the Social Security Trust Fund will be exhausted by 2033.
“It is no wonder that inflation, the economy, and government spending are the top issues on voters’ minds. Our financial futures are being jeopardized and we deserve better. Congress must stop spending money we don’t have and enact real solutions like those in The Heritage Foundation’s Budget Blueprint.”
Background:
Even prior to the COVID-19 pandemic and the ensuing $6 trillion spending spree, the federal budget was unsustainable, growing faster than the U.S. economy.
This excessive government spending has fueled an inflation crisis, with rates not seen in 40 years.
The Heritage Foundation has long been at the forefront championing fiscal responsibility. The Heritage Foundation’s Budget Blueprint includes more than 200 specific policy reforms to roll back excessive government spending, prioritize taxpayer dollars, reform major entitlement programs, restore federalism, promote opportunity for all, and protect rights and our American values.
Without reform, the two largest programs in the federal budget will soon be insolvent, with the Medicare Hospital Insurance Trust Fund facing depletion by 2030 and the Social Security Trust Fund being exhausted in 2033. More importantly, their outdated designs mean they are a bad deal for beneficiaries. The Heritage Foundation has put forward plans to modernize and support Social Security and Medicare, providing more choices, opportunity, and better outcomes for those who need them most.
