One commonly used measure of a country's fiscal position is the "fiscal gap." Over the next 50 years, assuming current policies continue, the U.S. fiscal gap is projected to be 5.6% of GDP. This implies that, to stabilize the debt as a share of GDP, we would need to either immediately and permanently reduce spending by 24 percent or increase revenues by 31 percent. Such draconian policy changes can be avoided by using a more balanced approach that includes both spending cuts and revenue increases.
Peter G. Peterson Foundation Chart Pack:
The PGPF chart pack illustrates that budget-making involves many competing priorities, limited resources, and complex issues. In this set of charts, we aim to frame the financial condition and fiscal outlook of the U.S. government within a broad economic, political, and demographic context.
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