The U.S. federal government has been habitually spending more money than it receives in taxes, running federal budget deficits every year but 5 since 1969. The federal debt, which is the accumulation of these deficits over time, can pose risks to the U.S. economy. But, in times of economic distress, a rising debt might be needed to buffer the economy. Our posts cover whether debt should be cause for concern; welfare spending and the federal budget; state and local finance; and the impact of COVID on public finance, among others.
May 24, 2023
The debt limit debate has cuts to Medicaid, SNAP and TANF on the table. The scope for savings in government spending is bound by their share of the budget.
May 11, 2023
The consequences of a failure to raise the debt ceiling are serious but difficult to quantify. Why does the U.S. have a debt ceiling, and what does it mean to raise it?
May 7, 2023
A discussion with Bill Gale of Brookings on the U.S. debt limit, how often it has been raised in the past, and policy options to avoid default if Congress fails to raise the debt ceiling.
March 22, 2023
A look at the sources of U.S. government debt, and a discussion of the short and long run effects of government borrowing.
January 22, 2023
As the U.S. Congress fails to raise the debt ceiling in a timely manner, what lessons might policy-makers draw from the British budget crisis of September 2022?
December 5, 2022
The impact on the Federal budget of rising interest rates is not immediately transparent due to the various types of outstanding government debt.
October 30, 2022
As of October 2022, the U.S. national debt stood at over $31 trillion. That amounts to nearly $90,000 of debt per citizen. But is there an upside to a government spending more than its tax revenues?
February 8, 2021
Olivier Blanchard joins Michael Klein to discuss the costs of a growing federal budget deficit today, and for future generations.
June 25, 2020
State tax revenues are falling while spending needs due to the coronavirus are spiking. Balanced budget amendments may lead states to raise taxes or cut spending.