This week’s charts use data from the Bureau of Economic Analysis and Bureau of Labor Statistics to analyze GDP growth and payroll changes before and after the government shutdown that occurred from December 16, 1995 to January 6, 1996.
What is the best way for the United States to get its fiscal house in order in the short term? Last week, we analyzed how much the US economy would have to grow by each year for public finances to balance by 2023. This week, we will compare this option to minor changes in public spending. This week’s charts use data from the Congressional Budget Office to highlight the US fiscal position over the next ten years. These charts display revenue and outlay projections over the next ten years under different assumptions of growth rates and spending changes.
The United States has both a debt and deficit problem, driven by years of overspending and unfunded promises made by politicians of both parties to pay for health care and retirement benefits to current and future seniors. The solution to the problem is relatively straightforward (although far from simple) and involves cutting spending; in particular, reforming programs like Social Security, Medicare, Medicaid, and the Affordable Care Act.
Elected amid a wave of anti-austerity sentiment, French President François Hollande promised to reverse the course of former President Sarkozy’s allegedly draconian spending cuts. A look at the data shows that there was very little that is austere about France's recent spending and a large number of tax increases under both Sarkozy and Hollande.
This week’s charts use International Monetary Fund data to make international comparisons of the public debt burden. The ratio of debt to Gross Domestic Product is one important indicator of a country's economic health. A higher debt-to-GDP ratio is generally correlated with lower rates of growth.
This week’s chart uses the level of spending to examine the share of the federal budget affected by the government shutdown. The shutdown has limited 17 percent of spending, amounting to $626 billion. This means 83 percent of projected 2014 spending of $3.6 trillion, amounting to $2.9 trillion, is unaffected and is continuing uninterrupted. Even if Congress is unable to agree on a spending bill, the government is still functioning, and many Americans who are dependent on various federal programs continue to receive funds.
Persistent federal budget deficits have contributed to the burgeoning US debt. This chart uses data from the United States Treasury to break down ownership of the debt held by the public, which currently amounts to $11.9 trillion.
This week’s chart series uses data from the US Treasury to illustrate the past 30 years of raising the debt ceiling. These charts show that raising the debt ceiling and living beyond our means is a bipartisan problem.
The Congressional Budget Office (CBO) recently released updated projections of the United States’ long-term budget outlook that confirm that we’ll be drowning in debt over the next couple of decades. This chart examines CBO's extended debt projections, which are estimates beyond the 10-year period covered by its regular baseline projections. This provides a more realistic picture of our fiscal outlook since it accounts for the harmful effects of debt on the economy, as well as lower levels of savings and revenue.
Americans currently spend about twice as much per capita on health care than residents of other advanced nations. These charts use the latest health spending data from Organization for Economic Co-operation and Development (OECD) to compare the level and growth rate of health care spending in the United States to those of other developed countries.