Myths about Budget Deficits

Author
John H. Makin
Content Type
Policy Brief
Institution
American Enterprise Institute for Public Policy Research
Abstract
February always brings with it the president's proposals for taxing and spending in the coming fiscal year. The president's budget proposals are accompanied by congressional and administration estimates of the path deficits and government debt are expected to take in coming years. Last year, those projections, especially a three-year string of actual and projected deficits over a trillion dollars from 2009 through 2011, excited widespread comment and handwringing about runaway deficits and their allegedly damaging effects in the form of lower growth, higher inflation, and higher interest rates.
Topic
Debt, Economics, Political Economy, Politics
Political Geography
United States