CRFB's policy paper America's Fiscal Choices at a Crossroad looks at the human side of the fiscal crisis. It examines the two choices we face in addressing our nation's fiscal problems - action or inaction - and how both of those choices could affect a variety of different groups within our society.
Along with the release of this analysis, CRFB hosted a "Voices of America" video contest where participants proposed their own ideas for controlling our growing public debt.
In this policy paper released by CRFB's Fiscal Roadmap Project, CRFB argues that unless we change course, "a fiscal crisis in one form or another will surely ensue." The paper discusses six realistic crisis scenarios the U.S. could face if debt continues on its upward trajectory. A crisis could be gradual or it could be sudden.
The U.S. is not alone in facing massive budget deficits and an exploding debt, nor is it the first country to face this type of situation. There are important lessons we can learn from other countries' fiscal turnarounds. In this paper CRFB discusses the experiences of Canada, Denmark, Finland, Ireland, and Sweden in successfully bringing their debt under control.
To provide models for U.S. policy in adopting a medium-term deficit reduction program over the next 10 years, this paper examines deficit reduction in other countries over the past 30 years and provides six lessons for the United States. Lesson six shows that it is preferable to make adjustments on your own terms before they are forced on you by your creditors.
The CBO recently projected a ten-year deficit of $7.1 trillion using a "current law" baseline. But these numbers may prove to be optimistic. CRFB argues that four major assumptions in the baseline are unlikely to materialize, leading to a ten-year deficit of $12.6 trillion. This paper discusses US Budget Watch's own "current policy" baseline, which assumes particular policies do not conform to current law.
Roll Call | July 22, 2009
The current reality is bleak. Consumers aren’t spending; banks aren’t lending; housing prices are still headed down; and unemployment continues to climb. While it is too soon to know whether to heed them, calls for another round of stimulus are increasing.