Problem: The President's 2007 budget proposal calls for the federal deficit to be cut in half by 2009 and eliminated by 2012. However, his budget does not appear to account for the rise in health care costs nor does it account for the baby boomers retiring starting in 2008. If the federal government doesn't aggressively pursue a contractionary fiscal policy (decrease spending and/or raise taxes) what effect will the increasing burden of health care and baby boomers have on the U.S. economy if the deficits grow?