Trillion-dollar deficits will permanently return by next year, and debt will exceed the size of the economy within 10 years, according to a new report by the Committee for a Responsible Federal Budget.
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The debt is due in part to recent tax and spending legislation, the president of the committee, Maya MacGuineas, said to FOX Business’ Maria Bartiromo on “Mornings with Maria.”
“We are really entering unprecedented territory because the only time the debt has been higher than this is right after World War II,” she warned.
The high debt levels will likely erase economic gains, dislodge productive investment, slow wage growth and potentially increase the likelihood of a subsequent fiscal crisis.
“Here we are with a strong economy at a time when we should be preparing for the baby boomers and getting our debt under control so that we are ready for the next downturn and we are doing just the opposite,” said MacGuineas.