Tuesday, December 16, 2008
[IWS] CBPP: LONG-TERM FISCAL OUTLOOK BLEAK [16 December 2008]
IWS Documented News Service
_______________________________
Institute for Workplace Studies----------------- Professor Samuel B. Bacharach
School of Industrial & Labor Relations-------- Director, Institute for Workplace Studies
Cornell University
16 East 34th Street, 4th floor---------------------- Stuart Basefsky
New York, NY 10016 -------------------------------Director, IWS News Bureau
________________________________________________________________________
Center on Budget and Policy Priorities (CBPP)
THE LONG-TERM FISCAL OUTLOOK IS BLEAK
Restoring Fiscal Sustainability Will Require Major Changes to
Programs, Revenues, and the Nation's Health Care System
By Richard Kogan, Kris Cox, and James Horney
< http://www.cbpp.org/12-16-08bud.htm>http://www.cbpp.org/12-16-08bud.htm )
or
http://www.cbpp.org/12-16-08bud.pdf
[full-text, 16 pages]
Press Release
NEW LONG-TERM DEFICIT PROJECTIONS PAINT GRIM PICTURE [16 December 2008]
Rising Health Costs, Aging Population Are Biggest Challenges; Expected Economic Recovery Package Not a Big Factor
http://www.cbpp.org/12-16-08bud-pr.htm
or
http://www.cbpp.org/12-16-08bud-pr.pdf
The nation faces a grim long-term budget outlook even after the economy recovers from the current recession, with the prospect of skyrocketing deficits and debt in the coming decades that will far eclipse all previous levels, the Center on Budget and Policy Priorities reported today.
Driving this grim outlook are at least three factors: (1) swiftly rising health care costs, (2) the aging of the population, and (3) an eroding federal revenue base, according to "The Long-Term Fiscal Outlook Is Bleak" (< http://www.cbpp.org/12-16-08bud.htm > http://www.cbpp.org/12-16-08bud.htm).
Under current budget policies, the federal debt will skyrocket from a projected 46 percent of gross domestic product in 2009 to 279 percent of GDP in 2050 more than two and a half times the record 110 percent at the end of World War II, the Center says. This assumes Congress will make the 2001 and 2003 tax cuts permanent and won't change policies governing large programs like Medicare or otherwise reform the health care system.
Debt of this size would threaten serious harm to the economy and the budget. By 2050, interest payments alone would soak up 80 percent of annual federal revenues, according to the Center analysis.
"The problem we face is so large that both taxes and programs will have to be on the table when serious conversations about long-term deficit reduction begin," said Robert Greenstein, the Center's executive director.
AND MORE....
______________________________
This information is provided to subscribers, friends, faculty, students and alumni of the School of Industrial & Labor Relations (ILR). It is a service of the Institute for Workplace Studies (IWS) in New York City. Stuart Basefsky is responsible for the selection of the contents which is intended to keep researchers, companies, workers, and governments aware of the latest information related to ILR disciplines as it becomes available for the purposes of research, understanding and debate. The content does not reflect the opinions or positions of Cornell University, the School of Industrial & Labor Relations, or that of Mr. Basefsky and should not be construed as such. The service is unique in that it provides the original source documentation, via links, behind the news and research of the day. Use of the information provided is unrestricted. However, it is requested that users acknowledge that the information was found via the IWS Documented News Service.
Stuart Basefsky
Director, IWS News Bureau
Institute for Workplace Studies
Cornell/ILR School
16 E. 34th Street, 4th Floor
New York, NY 10016
Telephone: (607) 255-2703
Fax: (607) 255-9641
E-mail: smb6@cornell.edu
****************************************
_______________________________
Institute for Workplace Studies----------------- Professor Samuel B. Bacharach
School of Industrial & Labor Relations-------- Director, Institute for Workplace Studies
Cornell University
16 East 34th Street, 4th floor---------------------- Stuart Basefsky
New York, NY 10016 -------------------------------Director, IWS News Bureau
________________________________________________________________________
Center on Budget and Policy Priorities (CBPP)
THE LONG-TERM FISCAL OUTLOOK IS BLEAK
Restoring Fiscal Sustainability Will Require Major Changes to
Programs, Revenues, and the Nation's Health Care System
By Richard Kogan, Kris Cox, and James Horney
< http://www.cbpp.org/12-16-08bud.htm>http://www.cbpp.org/12-16-08bud.htm )
or
http://www.cbpp.org/12-16-08bud.pdf
[full-text, 16 pages]
Press Release
NEW LONG-TERM DEFICIT PROJECTIONS PAINT GRIM PICTURE [16 December 2008]
Rising Health Costs, Aging Population Are Biggest Challenges; Expected Economic Recovery Package Not a Big Factor
http://www.cbpp.org/12-16-08bud-pr.htm
or
http://www.cbpp.org/12-16-08bud-pr.pdf
The nation faces a grim long-term budget outlook even after the economy recovers from the current recession, with the prospect of skyrocketing deficits and debt in the coming decades that will far eclipse all previous levels, the Center on Budget and Policy Priorities reported today.
Driving this grim outlook are at least three factors: (1) swiftly rising health care costs, (2) the aging of the population, and (3) an eroding federal revenue base, according to "The Long-Term Fiscal Outlook Is Bleak" (< http://www.cbpp.org/12-16-08bud.htm > http://www.cbpp.org/12-16-08bud.htm).
Under current budget policies, the federal debt will skyrocket from a projected 46 percent of gross domestic product in 2009 to 279 percent of GDP in 2050 more than two and a half times the record 110 percent at the end of World War II, the Center says. This assumes Congress will make the 2001 and 2003 tax cuts permanent and won't change policies governing large programs like Medicare or otherwise reform the health care system.
Debt of this size would threaten serious harm to the economy and the budget. By 2050, interest payments alone would soak up 80 percent of annual federal revenues, according to the Center analysis.
"The problem we face is so large that both taxes and programs will have to be on the table when serious conversations about long-term deficit reduction begin," said Robert Greenstein, the Center's executive director.
AND MORE....
______________________________
This information is provided to subscribers, friends, faculty, students and alumni of the School of Industrial & Labor Relations (ILR). It is a service of the Institute for Workplace Studies (IWS) in New York City. Stuart Basefsky is responsible for the selection of the contents which is intended to keep researchers, companies, workers, and governments aware of the latest information related to ILR disciplines as it becomes available for the purposes of research, understanding and debate. The content does not reflect the opinions or positions of Cornell University, the School of Industrial & Labor Relations, or that of Mr. Basefsky and should not be construed as such. The service is unique in that it provides the original source documentation, via links, behind the news and research of the day. Use of the information provided is unrestricted. However, it is requested that users acknowledge that the information was found via the IWS Documented News Service.
Stuart Basefsky
Director, IWS News Bureau
Institute for Workplace Studies
Cornell/ILR School
16 E. 34th Street, 4th Floor
New York, NY 10016
Telephone: (607) 255-2703
Fax: (607) 255-9641
E-mail: smb6@cornell.edu
****************************************
# posted by SBasefsky : 10:00 AM
