News
Wall Street Journal | CBO: Deficit to Narrow, Then Widen in ’18
Existing budget restraints and stronger economic growth will chip away at the federal deficit into 2017 before the gap begins to widen again, the Congressional Budget Office said, providing ammunition for both parties ahead of the White House’s first budget proposal to the Republican-controlled Congress.
Econ Comments & Analysis
CBO | The Budget and Economic Outlook: 2015 to 2025
The federal budget deficit, which has fallen sharply during the past few years, is projected to hold steady relative to the size of the economy through 2018. Beyond that point, however, the gap between spending and revenues is projected to grow, further increasing federal debt relative to the size of the economy—which is already historically high.
Blogs
Wall Street Journal | You Ask, We Answer: Why Is the Debt Rising Faster Than the Deficit?
Last year, the federal government’s deficit was the smallest since 2007. Doesn’t $3 trillion in revenue and $3.5 trillion in spending represent a government that’s out of control? Isn’t the deficit only okay because the Federal Reserve has pinned interest rates so low? What will happen when rates go back to normal? How can the total national debt rise faster than the deficit?
