EconAir

  According to the latest Congressional Budget Office (CBO) long-range forecast, government revenue will be $1.3 trillion more in 2030 than in 2020. Government debt will increase $10 trillion, from $30 trillion to $40 trillion in the same time period. If the average interest rate in 2030 is 4%, below the long-term average of 5%, then interest on the national debt in 2030 will be about $1.0 trillion higher than in 2022. Thus, most of the increase in federal tax revenue will go to pay for the increased interest expense on the national debt.   In every year in this interval, the deficit - the increase in the national debt - will be greater than the increase in revenue.   If the national debt rises to $50 trillion over the next eight years, as some analysts expect, then the increase in interest expense, at 4%, will be about $1.4 trillion. Thus, all the increase in revenue will just pay for the increase in interest expense.   CBO forecast is probably optimistic. By law, the forecast cannot