Economy

How Camp's Discussion Draft Would Impact the Economy

Along with its analysis of the conventional revenue impacts (summarized here by CRFB), the Joint Committee on Taxation (JCT) analyzed the potential economic impacts of Chairman Camp's proposal, also known as a macro-dynamic estimate.

CBO Continues to Say the Debt Will Be a Problem for Economic Growth

In its February 2014 Budget and Economic Outlook, CBO continued its previous warnings from last year's February outlook and September's long-term outlook: elevated and rising debt level pose serious risks for economic growth and budget flexibility.

In its latest outlook, CBO highlights on page one the consequences of high levels of debt:

Growth and Deficit Reduction Are Not Incompatible

Yesterday in an interview on CNBC's Squawkbox, former Treasury Secretary Larry Summers chimed in again on his views that boosting economic growth should be a more important priority than making long-term budget reforms. As CRFB said late last year in response to one of his op-eds, Dr. Summers's arguments seem to feed the false notion that long-term debt reduction and a growth strategy somehow conflict, when in reality they are one and the same. In addition, Dr.

Wessel: Why It's Wrong to Dismiss the Deficit

Two weeks ago, we responded to a Larry Summers op-ed calling for a focus on growth rather than deficits. Yesterday, Wall Street Journal economics editor David Wessel also responded, breaking down the arguments into three and taking them on one by one. He agrees with us that the short-term deficit isn't the issue, but the long-term deficit is.

Could Faster Growth Solve Our Debt Woes?

A number of commentators have suggested recently that our budget problems could be solved if only we focused more on promoting economic growth. Economic growth, they argue, would generate more revenue and thus make painful tax increases and spending cuts unnecessary.

The Economic Cost of the Shutdown

As we enter day 2 of the government shutdown, Americans across the country are already feeling the impact. With federal government offices and services shut down throughout the nation, thousands of government employees are furloughed, and there is no clear answer in sight regarding when they will return to work. But what damage will a shutdown do to the economy?

As the Fed Meets, CRFB Quantifies Interest Rate Risk Facing the Budget

Beginning tomorrow, the Federal Open Market Committee, the Fed's interest rate setting and deliberative body that meets eight times a year -- will meet for two days to make decisions about the future path of U.S. monetary policy. In particular, many are looking to see whether the Fed will begin a "taper" and slow the rate of asset purchases, signaling the beginning of an unwind of the Fed's expanded balance sheet.

Economists' Survey: Long Term, Not the Short Term, Should Be the Focus

The National Association for Business Economics (NABE) conducted its semi-annual survey recently, surveying 220 economists on questions of fiscal, monetary, and regulatory policy. On fiscal policy, they showed remarkable consensus that the long-term deficit, rather than the short-term deficit, is the government's primary fiscal challenge.

Get Ready for Budget Numbers to Change

As of Wednesday's GDP report, GDP for fiscal year 2012 was revised upward by roughly $560 billion to a total of $16.2 trillion. This almost Houdini-like event is due in no part to direct increases in production and consumption, but rather it is the result of the Bureau of Economic Analysis's (BEA) new accounting system.

The Analysis of the Analysis: CRFB's Take on CBO's Immigration Estimates

CBO's recent budgetary and economic analyses of the Senate immigration bill have been making waves in the political sphere as lawmakers rush to highlight or disavow the findings of $197 billion of total deficit reduction through 2023 and almost $700 billion in the 2024-2033 period.

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