Long-term Federal government budget problems and misleading forecast by CBO

 

Question:

Explain why there are long-term Federal government budget problems. Explain why the base-line forecast of the CBO is misleading. Include in your answer why solutions to the problem will necessarily involve a decision about which citizens will bear the burden of trying to balance the budget and how various general approaches can influence where the burden is likely to fall.

 

Summary:

The question about long term Federal government budget problems is discussed in the solution. Related questions such as misleading base-line forecast of CBO and the citizens bearing the burden of the budget are also discussed.

 

Word count: 394

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