Federal budget 'unsustainable' says CBO

The United States is operating on an unsustainable federal budget that is bound to seriously damage the economy, the Congressional Budget Office said.
DEC 13, 2007
The United States is operating on an unsustainable federal budget that is bound to seriously damage the economy as federal debt grows much faster than the economy, the Congressional Budget Office said today. Unless the federal government significantly changes its fiscal policy, providing healthcare to the high number of aging Americans will cripple the U.S. economy, said the CBO long-term budget outlook, released today. Medicare and Medicaid, the federal government’s major health care programs, have been consuming increasingly more of the federal budget as Baby Boomers age. Efforts to reduce overall government spending will “require potentially painful actions to slow the rise of health care costs,” the report said. The CBO said that to prevent deficits from growing to unmanageable levels, revenues must rise as a share of GDP, projected spending must fall, or budget-makers must achieve a combination of the two outcomes. The report said that making these changes soon would “lessen the risk that an unsustainable fiscal path poses to the economy.”

Latest News

Orion, RFG moves take aim at onboarding and transition speed
Orion, RFG moves take aim at onboarding and transition speed

Orion and RFG Advisory tackle account-opening delays with new updates as custodial integrations reshape how fast advisors can move client assets.

Corient adds $5B New York multi-family office Seven Bridges
Corient adds $5B New York multi-family office Seven Bridges

The deal extends the acquisitive mega-RIA's rapid 2026 expansion as industry consolidation hits record levels nationwide

Navigating the straight
Navigating the straight

As recent Middle East tensions put the Strait of Hormuz back in focus, a structured process with purpose can help protect investors against their natural self-sabotaging tendencies in choppy markets.

Commonwealth-affiliated Longwave hires LPL staffer amid Pacific Northwest expansion
Commonwealth-affiliated Longwave hires LPL staffer amid Pacific Northwest expansion

ESG-focused Longwave Financial, a Commonwealth-affiliated firm approaching $1B AUM, acquired Seattle-based MG Financial and added a client services hire from LPL.

Securitize becomes RIA as tokenized assets near $37B record
Securitize becomes RIA as tokenized assets near $37B record

Tokenization goes mainstream with regulators watching prompting some firms to take a proactive approach.

SPONSORED Direct indexing webinar targets tax-loss harvesting amid market swings

Northern Trust’s Ken Lassner shows advisors how to convert volatility into after-tax portfolio gains

SPONSORED Who builds the income when the pension disappears?

Dan Biagini of American Equity says the steady decline of pensions, longer lifespans and a reset in interest rates are rewriting how advisors build retirement income