Avila, Obama Administration, CBO discussed on Here & Now

Here & Now


The federal deficit is expected to soar past one trillion dollars in twenty twenty according to a new report from the congressional budget office and in the next ten years the country's debt will be almost as great as its entire annual economic output this is the latest cbo assessment after republicans passed a one point five trillion dollar tax cut last year and since both parties agreed to a one point three trillion dollar spending bill last month so what are the implications of so much debt let's bring in allie vel she he's msnbc anchor and economics correspondent he's also co host avila she in rural alley welcome back it's good to have you as i go to talk to you so let's be fair and just say that there were trillion dollar deficits in the obama administration but we'll get to that we can talk about it but there's also been some reporting in the past day or so that suggests the looming death that the cbo is describing could trigger an economic crisis in the coming years what are you hearing let's give a little perspective one is obviously the deficit is one year shortage in the debt is the accumulation of all of those shortages what the cbo is saying is that economic growth is going to average one point nine percent per year for the next ten years now that's very different during the campaign president trump was promising four five and six percent and his people have routinely been saying three percent one point nine percent is not terrible a mature economy it just less than what the president has been promising so that's the issue we're going to have lower economic growth than we thought and the tax cuts caused cost money so they're going to add one point six trillion dollars to the deficit the promise has been all the strong economic growth will offset that and won't be as bad as that well what the congressional budget office is saying is that it will be as bad as so it's not that was not part of the promise by the way the report projects that interest rates because of this are likely going to rise could you walk us through that is it because that once you get huge deficits you start turning on the end.

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