Explain implication of facts for federal government spending

Reference no: EM13950441

In its 2012 Long-Term Budget Outlook, the Congressional Budget Office (CBO) reported "During the next decade alone, the number of people over the age of 65 is expected to rise by more than a third. Over the longer term, the share of people age 65 or older is projected to grow from about 13 percent now to 20 percent in 2035". In its more recent Budget and Economic Outlook: 2014 to 2024, the CBO reported "Beyond 2017, CBO expects that economic growth will diminish to a pace that is well below the average seen over the past several decades.

That projected slowdown mainly reflects long-term trends-particularly, slower growth in the labor force because of the aging of the population." In addition, "Federal outlays are expected to increase by 2.6 percent this year, to $3.5 trillion, or 20.5 percent of GDP-their average percentage over the past 40 years. CBO projects that under current law, outlays will grow faster than the economy during the next decade and will equal 22.4 percent of GDP in 2024." Briefly explain the implications of these facts for federal government spending as a percentage of GDP in 2035.

Reference no: EM13950441

Questions Cloud

Suggested retail cost based on comprehensive costing : The product cannot resemble any existing product unless it has a valuable new feature, significantly reduces cost, or provides some other meaningful advantage. The final report will include schematics, circuit diagrams, a parts list, and a suggest..

Prepare a schedule to compare the total effect on net income : Prepare a schedule to compare the total effect on net income of Alternatives #1 and #2 related to the restructuring. Discuss whether the alternative with the most favorable effect on net income provides.

Methods for storing electricity : Complete one of the following projects involving methods for storing electricity considered thus far in this book (see Secs. 2.7, 4.8.3). Report your findings in a report providing a full rationale together with supporting documentation.

Discuss the trends in the u.s. airline industry : Discuss Jet Blue's strategic elements of cost, organizational culture, and human resource practices and evaluate whether each element provides the organization with a competitive advantage.

Explain implication of facts for federal government spending : In addition, "Federal outlays are expected to increase by 2.6 percent this year, to $3.5 trillion, or 20.5 percent of GDP-their average percentage over the past 40 years. CBO projects that under current law, outlays will grow faster than the econo..

Determining the electric and gas operation : Many appliances, including ovens, stoves, clothes dryers, and hot-water heaters, offer a choice between electric and gas operation. Select an appliance that offers this choice

Determine the effect on current income of debt restructuring : Prepare a schedule that determines the effect on current income of the debt restructuring and the reduction in par value of the common stock necessary to eliminate any de?cit in retained earnings.

Principles of thermodynamics : Ways to run cars on water are frequently touted on the Internet. For each of two different such proposals, write a three-page evaluation. In each evaluation, clearly state the claims made in the proposal.

Management theories-principles into management practices : In the first assignment, students are given a scenario in which the shipping manager who has worked for Recycled Furnishings since the inception of the company is getting ready to retire. The scenario serves to set the stage for students to demon..

User Account

All Pages