The math isn’t complicated. If the federal government doesn’t reform entitlements soon, the country will face a debt crisis. There is no disputing this. It’s inevitable. The only unknown is timing. And the stubborn determination of some leaders in both political parties to ignore runaway entitlement growth—the most urgent domestic challenge facing the United States—means the crisis will come sooner rather than later.
According to the Congressional Budget Office, in 2008 federal debt was 39 percent of the U.S. gross domestic product (GDP). In the summer of 2016, it was 75 percent of GDP. Without changes, it’s projected to be 86 percent of GDP in 2026, and 20 years after that, in 2046, it will be 141 percent of GDP—an all-time high. That is a disastrous trajectory with potentially devastating consequences. In the anodyne jargon of the CBO: “The prospect of such a large debt poses substantial risks for the nation and presents policymakers with significant challenges.”
