Fiscal Policy | Econofact

States Face Daunting Budget Gaps. What Can Be Done?

By Alicia Sasser Modestino, Michael Goodman and Alan Clayton-Matthews·June 25, 2020
Northeastern University, UMass Dartmouth, and Northeastern University

The Issue:

States across the nation are estimated to face budget shortfalls for the upcoming fiscal year 2021, ranging from as low as 4% in Arkansas to as high as 30% in New Mexico. In fact, these shortfalls have likely grown since first estimated as recent reports indicate that GDP has slowed more than expected,

Risks of Growing Debt vs. Fiscal Stringency in the COVID-19 Crisis

By William G. Gale and Zachary Obstfeld·May 11, 2020
The Brookings Institution and EconoFact

The Issue:

The U.S. government has responded to the severe economic downturn brought on by the coronavirus crisis with several major relief packages at an estimated cost over $2.9 trillion so far. Some political leaders are now questioning further government spending, pointing to sizable long-term fiscal shortfalls.

Government Budget Deficits and Economic Growth (UPDATE)

By Michael Klein·February 1, 2020
Fletcher School, Tufts University

The Issue:

The Congressional Budget Office (CBO) projects that the United States Government Budget deficit will be $1 trillion in 2020, which would represent 4.6 percent of Gross Domestic Product (GDP). This would be more than a 40 percent increase in the budget deficit as a percent of GDP from 2016 when the $587

Staring Down the Debt Limit

By William G. Gale and Emily Merola·July 22, 2019
Brookings Institution and Tax Policy Center

The Issue:

In what has become a predictable cycle, policymakers meet under pressure to raise the “debt ceiling,” the legal limit on the amount of debt the federal government can accumulate. In spite of the frequency with which this situation occurs, discussion around the debt ceiling is often shrouded in confusion.

The Political Considerations in Fiscal Policy (VIDEO)

By William G. Gale and Michael Klein·June 20, 2019
The Brookings Institution and The Fletcher School, Tufts University

This conversation was recorded on December 13, 2018.

Decisions on government spending and taxation have a direct impact on the economy. Yet fiscal policy is inherently political. Past proposals to create a board— like the Federal Reserve Board — for fiscal policy, that would be comprised of experts

The Distributional Effects of Fiscal Policy (VIDEO)

By William G. Gale and Michael Klein·April 28, 2019
The Brookings Institution and The Fletcher School, Tufts University

In this video, William G. Gale of The Brookings Institution, and EconoFact co-founder Michael Klein discuss the distributional effects of fiscal policy and the progressivity of the US tax system.

The combination of tax and spending policies in the United States is progressive - but less so than in major European

Are Growing Federal Budget Deficits and Debt Cause for Concern?

By William G. Gale·February 13, 2019
Brookings Institution

The Issue:

Over the next ten years, the United States is on course for routine trillion-dollar annual deficits in the federal budget and the highest debt-to-GDP ratio in its history. Beyond the next decade, large and rising projected annual deficits will push the national debt steadily upwards, reaching almost

What Tools Does the U.S. Have to Combat the Next Recession? (VIDEO)

By Karen Dynan and Jay C. Shambaugh·December 12, 2018
Harvard University and George Washington University and The Hamilton Project, Brookings Institution

Excerpt from webinar with Karen Dynan (Harvard University), Jay Shambaugh (George Washington University, and The Hamilton Project at The Brookings Institution), and Eduardo Porter (New York Times), October 23, 2018. A collaboration between EconoFact and The Hamilton Project, Brookings.

The Issue:

U.S. fiscal ...
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