Kate Davidson, Wall Street Journal, Congressional Budget Office discussed on This Morning with Gordon Deal
The Congressional Budget Office within just a couple of years that it just the interest payments alone on our data are going to be as much as we spend on the entire Medicaid program by twenty twenty three will be bigger than we spend on the entire defense budget. So really eye opening numbers here goodness. So many of us who might be alarmed by that thinks surely this is a wakeup call. But we've been down this path before though, right? I mean what what could happen. I guess in some of these may be worse case scenarios that are developing here. Yeah. Well, I think that the economic research has showed us that, you know, high high deficits and high high high data courses is not good for the economy over the long run. And this is a big part of the debate that lawmakers were having and and policy wonks or having around the tax cuts last year. You might remember. There was a big debate about tax cuts pay for themselves. And the reason why that was so important is that, you know, the the first of all Republicans are arguing that it was tax cuts. We're going to boost the economy, I think that definitely this year we have seen some of that consumers are spending a lot more that's driving this uptick and economic growth, but the concern from a lot of people was well, you know, we're going to cut taxes we need to cut spending as well because we're going to have lower revenues. You know, they're they're people aren't going to be paying as much as much in taxes seems to make sense. But the argument went well now it's going to generate so much growth. People are going to be making more money. More people are going to be. Working more revenues coming in. And it doesn't look like that's really what's happening. And so essentially what that means is that we had a much higher deficit this year than we did last year. And the government is set to issue a whole lot more get this year in order to get the cash that it needs to on the government operations because we just don't have the same revenue that you would expect to see it in an economy. That's doing this. Well, I mean, essentially revenue kinda were steady, but you expect them to be a lot higher. So anyway, that's a very long way of saying that we're continuing to spend a lot more. We didn't cut spending in response to the tax cuts actually the government passes, great big spending deal. So that's just me and more more and higher borrowing and it markets get nervous about that. Because again, it could weigh on economic growth crowd out private investment, speak with Kate Davidson, Wall Street Journal reporter about her story entitled US on a course to spend more on debt. Then defense is possible that things could. Reverse like that happened in the nineties. Right. We went from a debt to a surplus. Right. Exactly. You know, we we talked to someone in our story. Who said, look, you know, sometimes deficits are not all bad. Sometimes they're necessary to help get the economy really going and bring in more workers, enter workforce, and this this we talk about these things like they're never going to change like certainly policy makers at any time could take a big action to reverse things. And and I think there are a lot of a lot of people deficit. Hawks think tanks and people were kind of outside government looking in saying, wow, we really need to confront this. Of course. Now after the midterms we have a divided congress. So it's really unclear whether they're going to be able to come together and make these big really hard decisions to reverse this trend. Thanks, kate. That's Wall Street Journal reporter Kate Davidson, it is twenty minutes now in front of the hour on This Morning, America's.