12% Income Reduction in 2049: National Debt Threatens Economic Growth, Study Warns of $14,500 Less per Person in 2054

The rising national debt is expected to slow down economic growth and wage increases, according to a new Congressional Budget Office (CBO) report.

Raises concerns about the long-term health of the U.S. economy.

The Committee for a Responsible Federal Budget (CRFB) analyzed the CBO report and found that current debt levels could reduce income growth by 12% over the next 30 years and by 13% annually by 2049. This suggests a pressing need for fiscal reforms to avoid a potential economic slowdown, according to the report of Just The News.

The CRFB also highlighted that if the national debt continues to rise income growth could drop by 33% over the next 30 years and by 42% annually by 2049. This would mean about $14,500 less per person by 2054, showing the personal financial impact of increasing debt.

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(photo: Bloomberg)

National Debt Threatens Economic Growth

According to the CBO’s current projections, the national debt could reach 166% of GDP by 2054, with income per person growing to only $123,200, a slowdown of about 12%. This underscores the need for policy changes to manage debt and ensure economic stability.

The Committee for a Responsible Federal Budget warns that current national debt levels could reduce income growth by 12% over 30 years and by 13% annually by 2049. Without fiscal reforms, this could worsen, slashing income growth by 33% over three decades and by 42% yearly by 2049. Each person could see $14,500 less in income by 2054. With debt projected to hit 166% of GDP by 2054, urgent policy changes are needed to maintain economic stability and ensure individual income growth.

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