In recent weeks, those who claim America has no debt problem – the "debt deniers" – have doubled-downed on claims that enough has already been done to deal with our debt. They argue that the debt will solve itself now that we've enacted modest discretionary spending reductions through 2021 and raised taxes on the top one percent of Americans. The debt deniers are wrong, and the truth is we have a long way to go to truly fix the debt. Here are the top five reasons why:
  • The Debt is Still Rising. Despite the deficit reduction from the Budget Control Act and the American Taxpayer Relief Act, debt is set to rise from 73 percent of the economy today to 79 percent by 2023. By comparison, debt levels have historically been below 40 percent.
  • A Further $2.4 Trillion in Deficit Reduction Is Needed This Decade. The Committee for a Responsible Federal Budget (CRFB), a non-partisan think tank, recently released a study concluding that $2.4 trillion was the minimum additional deficit reduction necessary to put the debt on a clear downward path as a share of the economy over the next decade.
  • Population Aging and Health Care Cost Growth Threaten the Long-Term. The rising costs of Social Security, Medicare, and Medicaid will drive debt levels up astronomically in future decades – exceeding the size of the economy in the 2030s and headed toward three times the economy by the time today’s youth retire. No economy could sustain these levels of debt, and action will need to start soon so it can be phased in and workers have time to prepare.
  • Debt Reduction Is Critical to Economic Growth. According to a new analysis by the Congressional Budget Office, an independent government agency, a $2+ trillion deficit reduction package would increase the size of the economy by nearly 1% in ten years and accelerate long-term growth – creating jobs for America's middle class. In the short-term, economic growth will be much better served by gradual and intelligent deficit reduction than blunt across-the-board cuts.
  • Modest Reductions Won't Do The Job. Some have called for $1.5 trillion of additional deficit reduction in order to stabilize the debt. Although this would be a start, it would leave no margin for error if projections are off, provide no insurance against future irresponsibility in Washington, offer no fiscal flexibility to deal with future crises, and would almost certainly fail to stabilize the debt in future decades.

Join our team to fight back against the debt deniers.

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Tweet the FACTS
  • It's time for #debtdeniers to face facts: a further $2.4 trillion in deficit reduction is needed.

  • Tell the #debtdeniers: the debt is still rising from 73% of economy to 79% in 2023 if we do nothing.

  • Message for #debtdeniers: population, aging & healthcare cost growth threaten the long term.

  • Let #debtdeniers know: modest $1.5 trillion deficit reduction doesn't leave us any wiggle room.

  • CBO fact for #debtdeniers: a $2+ trillion deficit reduction package will grow economy by 1% over 10 years.

© 2013 The Committee for a Responsible Federal Budget and Fix the Debt Coalition, Inc.