Slight economic shifts could result in higher-than-expected deficits over the next decade, said the Congressional Budget Office (CBO). The CBO recently issued a report that analyzed variables that could affect the economy through 2032, including productivity growth, gross domestic product, labor force growth, and interest and inflation rates. For example, if productivity growth slowed by 0.1% annually, hourly wages could fall, leading to reduced tax revenue and higher deficits. The report concluded that the federal budget is “highly sensitive” to each variable, though it conceded that the consequences of shifts “are difficult to accurately predict.” Here’s the report: https://bit.ly/3NubPdG
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