CBO Admits: Deficits ARE Harmful. Really!

Gee. It's the SPENDING, STUPID!!

Who Coulda Node??

The Congressional Budget Office today released a new report on the risk of a fiscal crisis occuring in the United States due to our long-term debt...

The bottom line is that the longer we prolong dealing with our debt problem, the greater the risk of a fiscal crisis, and the more unattractive the options become for digging ourself out of the mess.

To no one's surprise, CBO blesses the idea of increasing taxes.

But:

It outlines several consequences for growing debt, including crowding out of private investment and the need for higher taxes and/or spending cuts. Of higher taxes, however, it warns that, "To the extent that additional tax revenues were generated by increasing marginal tax rates, those rates would discourage work and saving, further reducing output and incomes."

The debt--which is engendered by SPENDING--will also impair military readiness (and operations, if it gets serious enough.)