Nation¿s Long-Term Fiscal Outlook : April 2007 Update: the Bottom Line: Federal Fiscal Policy Remains Unsustainable

Since 1992, GAO has published long-term fiscal simulations of what might happen to fed. deficits & debt levels under varying policy assumptions. Current long-term simulations show ever-larger deficits resulting in a fed. debt burden that ultimately spirals out of control. There are two alternative fiscal paths. The first is ¿Baseline extended,¿ which extends the CBO¿s baseline estimates beyond the 10-year projection period, & the second is an alternative based on recent trends & policy preferences. For this update, GAO modified the alternative simulation to reflect a return to historical levels of revenue & a more realistic Medicare scenario for physician payments. Both simulations show that we are on an unsustainable fiscal path. Charts & tables.Leonard, Barry is the author of 'Nation¿s Long-Term Fiscal Outlook : April 2007 Update: the Bottom Line: Federal Fiscal Policy Remains Unsustainable', published 2007 under ISBN 9781422319178 and ISBN 1422319172.