Tuesday, January 24, 2017

On the U.S. Government’s Fiscal Imbalance: Federalism to the Rescue?

At the outset of the Trump administration in the U.S., real economic output was projected to grow at an annual rate of 1.9 percent over the next decade.[1] The new federal president was hoping his proposals of tax cuts and $1 trillion in additional infrastructure spending over a decade would bump up the annual growth to 4 percent. I submit, however, that just over 2 percent more in the growth rate would not alter the stark “budget reality” facing the new president and the American people.

The full essay is at "U.S. Government's Fiscal Imbalance."



1. Alan Rappeport, “Federal Debt Projected to Grow by Nearly $10 Trillion Over Next Decade,” The New York Times, January 24, 2017.