The United States’ Fiscal Policy in a Global Context
October 31, 2024
Public debt in the United States is projected to rise faster and reach higher levels than in most other advanced economies.
Fiscal Policy
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.
October 31, 2024
Public debt in the United States is projected to rise faster and reach higher levels than in most other advanced economies.
June 19, 2024
Interest payments on US government debt relative to GDP are expected to rise to levels not seen since 1940 contributing to the fiscal challenges the U.S. faces.
November 15, 2023
The debt is projected to reach levels beyond historical experience in the next 3 decades. The challenge is significant but manageable as a matter of economics.
June 12, 2023
Despite the high-stakes debt ceiling negotiations, U.S. debt relative to GDP is projected to keep growing over the next decade. What factors account for this projection and why does it matter?
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?
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.
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.
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.