Deficits and Debt After the Rescue

From the Committee for a Responsible Federal Budget:   Now that the American Rescue Plan Act has been signed into law, the federal deficit is on course to exceed $3 trillion this year, with debt reaching a new record as a share of the economy.   In February,...

Fiscal Debt, Idea Deficit

Jonathan Bydlak at LegBranch.org: [As] we come out of the economic and public health hellscape of the last year, the potential for a new crisis is beginning to rear its ugly head. The haunting fiscal picture that the coronavirus has left in its wake was summarized in...

Inflation

Many posts have discussed the deficit and the debt.  Policymakers and the general public have tended to ignore these problems in recent years, in part because of low inflation and interest rates. We have not had a double-digit annual increase in the consumer price...

Reforming Reconciliation

Scott Newsome at LegBranch.org on reforming the Congressional Budget Act (CBA): First, section 310(a) of the CBA, which outlines the reconciliation process, is currently silent on the issue of whether it can be used to increase or decrease deficits. This leaves that...

Debt and Free Lunch

Some policymakers think that the federal debt is a free lunch: growth rates will always exceed interest rates, allowing growth itself to reduce the debt.  This theory is badly flawed, explain Sita Slavov and Alan Viard at The Hill: There is always a chance that the...