Proponents of government spending argue that the government can borrow as much as it wants, so long as the interest rate is less than the rate of economic growth. However, government deficits are far too high for this to be the case. Continuing to run large deficits will either lead to higher inflation or sharp cuts to entitlement programs. Solving the US fiscal problem will require strong pro-growth policies, a slowdown in government spending, and reforms to our chaotic tax system and entitlement programs.
For more information, visit the PolicyEd page here: https://www.policyed.org/perspectivesonpolicy/does-government-debt-matter-anymore/video
Read “r ⟨ g” by John Cochrane. Available here (PDF): https://static1.squarespace.com/static/5e6033a4ea02d801f37e15bb/t/61021eb497ddc12e8106e3b6/1627528884849/rvsg.pdf
Watch the Hoover Institution Policy Seminar with John Cochrane. Available here: https://www.hoover.org/events/policy-seminar-john-cochrane-0.
Watch “The Economy and the Deficit,” with John Taylor. Available here: https://www.policyed.org/debt-and-deficit-primer/economy-deficit/video.
Read “The US Debt: Causes and Consequences” on PolicyEd. Available here: https://www.policyed.org/policy-insights/us-debt-causes-and-consequences.
Watch “One Nation Under Debt” on PolicyEd. Available here: https://www.policyed.org/america-balance/one-nation-under-debt/video.
Read “Thinking about Long-Term Debt” on PolicyEd. Available here: https://www.policyed.org/policy-insights/thinking-about-long-term-debt.
Visit https://www.policyed.org to learn more.