One of the few things Democrats and Republicans appear to agree on is that fiscal responsibility is for losers. As a result, the country’s looming financial breakdown gets barely a mention as this year’s elections approach. Last week’s bracing projections on the deficit from the Congressional Budget Office (CBO), for instance, passed almost unnoticed. How long this studied inattention can be sustained or what it will take to get Washington even talking about solutions is anybody’s guess. Meantime, the odds of an outright fiscal crisis within the next few years are rising steadily.

The CBO now expects a deficit of $1.6 trillion, or 5.6% of gross domestic product, for the current fiscal year. That’s for an economy at full employment and growing pretty well. Under current law, the gap between spending and taxes keeps widening over the next decade, rising to $2.6 trillion, or 6.2% of GDP, by 2034. Despite steady economic growth, debt will rise from 97% of GDP this year to 116%. From there, it just keeps going up.

QOSHE - The One Big Thing Democrats and Republicans Agree On - Clive Crook
menu_open
Columnists Actual . Favourites . Archive
We use cookies to provide some features and experiences in QOSHE

More information  .  Close
Aa Aa Aa
- A +

The One Big Thing Democrats and Republicans Agree On

8 0
14.02.2024

One of the few things Democrats and Republicans appear to agree on is that fiscal responsibility is for losers. As a result, the country’s looming financial breakdown gets barely a mention as this year’s elections approach. Last week’s bracing........

© Bloomberg

Get it on Google Play