Other CRFB Papers
In its Analysis of the President's Budget, CBO estimates that the FY 2011 budget proposals would cause public debt levels to rise to 90 percent of GDP, above the 68 percent projected in CBO's baseline. It is clear that the President's Budget continues to place the country on an unsustainable fiscal path. The Administration must address the issue of excessive borrowing in the event that the fiscal commission does not get the country back on sustainable fiscal footing.
A year after its creation, the ARRA has disbursed about $300 billion, of the now $862 billion, through spending increases and tax breaks. Almost all economists agree that the ARRA has helped to mitigate the crisis, but there is debate over the extent to which it has helped. If policymakers decide to enact additional stimulus or extend existing provisions, they should focus on measures which can do the most good at the least cost, and should fully offset any costs over the long-run.