The current economic crisis and response has dramatically expanded federal deficits. While this borrowing is largely necessary and desirable to combat the effects of the pandemic and resulting recession, it will lead to a permanent increase in the national debt.
Committee senior vice president and senior policy director Marc Goldwein presented the Committee’s budget projections. Marc showed the effect of the pandemic on deficits, debt, federal trust funds, and long-term sustainability. He also discussed the potential implications of further fiscal support.
According to their predictions, there will be less than a decade left to address Social Security’s looming insolvency, as Social Security trust funds will exhaust their reserves by 2031.
Watch CRFB’s latest webinar discussing the projections here:
See the original article here.