The US Path to Record Deficits
In 2000, the federal government actually ran a surplus and the Congressional Budget Office, Capitol Hill’s nonpartisan scorekeeper, projected the Treasury would keep collecting enough revenue to pay for all government programs and generate continuing surpluses.
Fast-forward to 2025, and the U.S. is running record deficits outside of wars, recessions or crises.
The nation’s publicly held debt is nearing 100% of gross domestic product and is projected to surpass the post World War II record of 106% in a few years.
What happened?
Wall Street Journal 18 June 2025
https://www.wsj.com/politics/policy/us-budget-deficit-timeline-2ad66b64
Republicans need to accept tax increases.
Democrats need to accept limits on the welfare state.
The great thing about near-zero rates, for individuals as well as governments, is that they create the illusion you can spend as much as you like without facing any trade-offs — after all, borrowing seems free.
https://englundmacro.blogspot.com/2025/06/republicans-need-to-accept-tax-increases.html
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