The latest projections from the CBO predict the budget deficit will surge toward $2 trillion by the end of the decade if current policies continue. And it is not a matter of cutting discretionary spending; these rising deficits are occurring in a full-employment economy, and their future growth is driven by Social Security and Medicare shortfalls that will continue to accelerate. Even $2 trillion deficits may be optimistic, as rising interest rates (even at 1990s levels) could push the deficit towards $3 trillion within a decade.

Brian Riedl is a senior fellow at the Manhattan Institute. Follow him on Twitter here.