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...

Deficit and Debt

From the Congressional Budget Office: In fiscal year 2020, which ended on September 30, the federal budget deficit totaled $3.1 trillion—more than triple the shortfall recorded in fiscal year 2019. Much of that amount was the result of the economic effects of the...

Deficit and Debt

From the Congressional Budget Office: Deficits. CBO projects a federal budget deficit of $3.3 trillion in 2020, more than triple the shortfall recorded in 2019. That increase is mostly the result of the economic disruption caused by the 2020 coronavirus pandemic and...

Consequences of Debt

Coronavirus is accelerating the already-serious problem of federal debt.  James McBride, Andrew Chatzky, and Anshu Siripurapu at the Council on Foreign Relations: The United States’ debt-to-GDP ratio is among the highest in the developed world. Among other major...

The Best Horse in the Glue Factory

Former Senator Judd Gregg (R-NH) at The Hill: The deficit for this year is now projected to exceed $4 trillion. This makes the deficit approximately four times larger then any deficit ever wrung up before. The debt we will owe as a nation will exceed our gross...

Grim Economic Milestones

An April 24 report from CBO: CBO has developed preliminary projections of key economic variables through the end of calendar year 2021, based on information about the economy that was available through yesterday and including the effects of an economic boost from...