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

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.

CouponFollow Extension

$161
OFF

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

1 week from now

concordcoalition.org

FAQs about The Structural Deficit: What is It, Why Do We ... - The Concord … Coupon?

What is a structural deficit?

The structural deficit reflects a chronic mismatch between government revenue and spending that under current policies will dramatically worsen as health care costs rise and the population ages. According to the CBO, cyclical factors added $367 billion to the deficit in 2011. ...

What is a structural budget imbalance?

Mier: A structural budget imbalance exists when a tax regimen fails to keep pace with changes in the economy. The result is that expenditures exceed revenues over time, as a result of factors beyond the economic cycle. This scenario can occur when a government’s expenses remain constant, but revenues decline as a result of a changing economy. ...

Are We projecting a deficit or a structural imbalance?

No, say the accountants and economists at the Office of Management and Budget. Because there is no adopted budget for those years, it is only a projected negative balance. “Let me clarify that we are not projecting a deficit, we are projecting a structural imbalance,” said Erin Campbell, the commissioner of MMB. ...

What factors might cause a structural imbalance?

What happens if the structural deficit declines?

On the other hand, if the structural deficit declines, the government may try to curb inflation or adopt contractionary fiscal policies. The structural deficit plus the cyclical deficit represents the total budget deficit. ...

Why is structural budget deficit important?

Examining the structural budget deficit is important to reveal the government’s fiscal policy stance. The change in the deficit reflects a deliberate change by the government to affect the economy. For example, during a difficult economy, such as a recession, the government usually increases the deficit to stimulate economic growth. ...