The Congressional Budget Office (CBO) released new projections on Monday stating the federal government's annual budget deficit is expected to surpass $1 trillion by 2020 despite healthy economic growth.
CBO projects deficit at $804 billion this year, 43% higher than it had projected last summer. The deficit was $665 billion in the last fiscal year. The projected wider growth is attributed to tax cuts and spending increases over the past four months. Some economists argue the growth in deficit is not alarming as long as we have economic growth. Other economists are more skeptical insisting we should impose reform.
Richard K. Vedder, economist and distinguished professor of economics emeritus at Ohio University and senior fellow at The Independent Institute