by Jagadeesh Gokhale
February 20, 2013
This paper updates earlier calculations of generational accounts and fiscal and generational imbalance measures based on the Congressional Budget Office’s (CBO) March 2012 Budget Outlook Update. It finds that the fiscal imbalance embedded in the federal government’s current law (Baseline) policies amounts to 5.4 percent of the present value of future U.S. gross domestic product (GDP), or 11.7 percent of the present value of future payrolls. However, given past precedents, federal current-law policies are unlikely to be implemented.