Efforts to Reduce Structural Deficits Must Mean More Than …

Jun 7, 2010 · There are legitimate, and conflicting, concerns with each. From a fiscal standpoint, however, it will be important to keep an eye not so much on the official score but on the cost of maintaining the policies that Congress votes to extend. Concern about deficits must mean …

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The Structural Deficit: What Is It, Why Do We ... - The Concord …

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One possible response to the recent spike in federal budget deficits — from $161 billion in 2007 to more than $1 trillion in each of the last three years is: Don’t worry. It’s all caused by the bad economy. When the economy recovers, we’ll be fine.

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The CRFB Fiscal Blueprint For Reducing Debt And Inflation

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Oct 26, 2022 · The blueprint would save $7 trillion over a decade, enough to stabilize debt as a share of the economy and reduce deficits to below 3.5 percent of GDP. Incorporating the …

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Macro Ch 12 Flashcards - Quizlet

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A) Federal revenues minus federal expenditures at full employment under prevailing fiscal policy. If the total budget deficit is $200 billion and the deficit at full employment is $120 billion, then …

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FAQs about Efforts to Reduce Structural Deficits Must Mean More Than … Coupon?

Why should we be concerned about the structural deficit?

The most basic reason to be concerned about the structural deficit is that it is projected to grow faster than the economy. Even assuming a strong economy (i.e, no cyclical deficit), current policies (i.e., the structural deficit) will produce a steadily rising debt-to-GDP ratio for as far as the eye can see. ...

How can we address the structural deficit?

They also regulate individual and private sector business activity. One way to address the structural deficit is to permanently reduce government expenditure as a percentage of gross domestic product (GDP). Government expenditure as a proportion of GDP is currently higher than the long-term average. ...

How do structural deficits differ from cyclical deficits?

Unlike cyclical deficits, structural deficits reflect a chronic problem that must be addressed through changes in tax and spending policies. The most effective policy changes are those affecting permanent law, such as entitlement programs and tax provisions that run on autopilot. ...

Can economic growth change the structural deficit?

In other words, absent change, the structural deficit under current policies produces a vicious cycle of higher deficits, debt and interest costs that spirals upward in perpetuity. No plausible level of economic growth can change this dynamic. It requires a legislated solution. ...

Should we enact a broad deficit reduction surtax?

Specifically, we suggest to: Enact a Broad Deficit Reduction Surtax ($1 trillion) on individual and corporate income – with few deductions and exclusions – which would stay in effect so long as the budget is out of balance but phase down with very low deficits. ...

Should a deficit reduction plan go further?

Aiming to go further may actually have the unintended effect of making it harder to enact needed deficit-reduction legislation by making the standard for success one that requires budget cuts and tax increases of such severity that they are unacceptable politically. ...