Congressional Budget Office Director Phillip Swagel said faster economic growth is unlikely to keep U.S. debt in check, even if GDP expands at more than double its current pace.
Gross debt is now $40 trillion, and publicly held debt is 100% of GDP. Just keeping that ratio flat, let alone bringing it down, would require a massive, sustained boom. For now, CBO see the debt-to-GDP ratio soaring to 120% by 2036.
During a Minneapolis Fed conference on Thursday, Swagel said stronger economic growth will help by bringing in more revenue for the federal government, but it’s not that simple.
Federal spending also boosts growth, which lifts wages that in turn affect outlays on Social Security benefits, he pointed out. A robust economy…