New study warns of US long-term debt problems

Associated Press

Photo: Video by kgun9.com

New study warns of US long-term debt problems

CREATED Sep. 17, 2013

WASHINGTON (AP) - A new government study says federal health care and retirement programs are threatening to overwhelm the federal budget and harm the economy in coming decades unless Washington finds the political will to restrain their growth.
   
The Congressional Budget Office report says government spending on health care and Social Security would double, relative to the size of the economy, in 25 years and that spending on other programs like defense, transportation and education would decline to its smallest level by the same measure since the Great Depression.
   
The report is one of a series by the agency and other budget watchdogs warning that spiraling long-term debt threatens to crowd out private investment, raise interest rates and limit Washington's ability to respond to a financial crisis.

(Copyright 2013 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.)

Loading...