If the federal debt continues to grow at current rates, it is on track to be almost twice the size of the U.S. economy by 2037, driven largely by entitlement spending on baby boomers, a new analysis projects.
According to a Congressional Budget Office report released Tuesday, the aging baby boom generation “portends a significant and sustained increase in the share of the population receiving benefits from Social Security, Medicare, and as well as long-term care services financed by Medicaid.”
Per capita healthcare spending is likely to continue rising faster than spending per person on other goods and services, according to the report.
The report urges policymakers to “increase revenues substantially above historical levels as a percentage of GDP, decrease spending significantly from projected levels, or adopt some combination of those two approaches.”
Click here to read the full report.
