Category Archives: Budget & Debt

Investment-Unemployment Link Still On Track

When the recovery was getting started I pointed out the remarkably strong inverse relationship between fixed investment as a share of GDP and the unemployment rate, and argued that a policy that focused on getting businesses to invest more would … Continue reading

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A Debt Limit Strategy Rather Than Tactics

The recent debate about the debt limit focuses on the negative economic impact of a decision by the government not to increase the debt limit. That’s why President Obama says he is asking for clean debt limit increase—one not linked … Continue reading

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No Debt Fix In Sight

The election is over, the fiscal cliff is over, and the problems remain. For the past several years on this blog I have been showing simple charts to monitor progress—or lack of progress—on the persistent deficit and the growing debt, … Continue reading

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Are these the shadows of the things that Will be…

. . . or are they the shadows of things that May be, only? But if the courses be departed from, the ends will change.  So go back to First Principles, 102ff    

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Exploding Debt Still Threatens America

Back in May 2009 I wrote “Exploding Debt Threatens America” in the Financial Times. Unfortunately the federal debt is still exploding, but fortunately we are learning more about the threat thanks to research reported and carefully explained in a new … Continue reading

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Debt Fireworks Continue On This Independence Day

On Independence Day two years ago I wrote a piece comparing America’s exploding debt projection (from the 2009 and 2010 Congressional Budget Office’s Long Term Budget Outlook) with the fireworks on the 4th of July. As I later put it in … Continue reading

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More on the S&P Downgrade

Two years age in an article in the Financial Times I wrote that “Standard and Poor’s decision to downgrade… should be a wake-up call for the US Congress and administration.”  At that time I was not, of course, referring to … Continue reading

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Treasury Versus S&P on the Downgrade: It’s Not a Math Error

The White House and the Treasury are accusing Standard and Poor’s of making an elementary arithmetic mistake in the recent downgrade decision.  Treasury’s John Bellows writes about what he calls a “$2 trillion mistake” saying that “After Treasury pointed out … Continue reading

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Why Much Was Accomplished in the Debt/Budget Negotiations

Many are still debating how much was accomplished in the debt/budget agreement approved by the House today with the Senate to vote and the president to sign tomorrow. In my view, much was accomplished, and credit goes to all those … Continue reading

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The Boehner and Reid Budget Plans Compared

Today the CBO released its updated score of the Boehner budget proposal and the Reid budget proposal. So we can now do an apples-to-apples comparison of the year-by-year numbers in the two plans, and thereby get a better understanding of … Continue reading

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