Long-Term Economic Effects of Chronically Large Federal Deficits. CBO Economic and Budget Issue Brief

摘要

Since fiscal year 1960, the federal government has recorded budget deficits averaging 2.1 percent of gross domestic product (GDP), and those deficits have been especially large in each of the past three years. Depending on the course of policy and the economy, deficits may moderate as a share of GDP over the next decade. But looking farther ahead, the demand for federal budgetary resources is expected to rise steadily under current law as the baby boomers retire and become eligible for Social Security and Medicare. Persistently large federal deficits can erode the growth of future living standards by reducing national saving, which slows the accumulation of wealth, and degrading economic performance.