In response to what I thought were straightforward renditions of the data indicating reductions in government spending, reader W.C. Varones writes: “Cutting government spending” is a real stretch.” In a (perhaps vain) attempt to convince him that indeed spending is declining, I present data from BEA and CBO (I am hoping that he hasn’t joined the Jack Welch view of government statistics gathering).
Category Archives: budget
IMF Article IV on the US: “deficit reduction in 2013 has been excessively rapid and ill-designed”
The IMF has just concluded its Article IV consultation with the US. The concluding statement observes:
Spurring growth in an era of constraints
From 30 ‘Memos to the Left’ entitled ‘Progressive Governance: The Politics of Growth, Stability and Reform’.
For over four years, the economies of the Euro zone, the UK, US and Japan have been mired in a slow and hesitating recovery from the deepest recession since the Great Depression. In the beginning, policymakers responded aggressively to both the illiquidity and insolvency problems in the financial systems, and the collapse in aggregate demand. …
Are There Reasonable Approaches to Fiscal Consolidation?
According to the CBO, under the President’s budget, the deficit hovers around 2% of GDP, and debt-to-GDP stabilizes through 2023 at levels lower than today’s.
Sovereign debt concerns in 2013
Interest rates on government debt for a number of European countries– notably Greece, Portugal, Ireland, Italy, and Spain– shot up considerably during 2010-2012. Those yields have fallen significantly from their peaks, though these five countries still face higher borrowing costs than most other countries in Europe.
How Fannie Mae made its profit
Mortgage buyer and insurer Fannie Mae was in the news again this week.
Another mediocre GDP report: is this the new normal?
The BEA released today its estimate of 2013 first-quarter real GDP, which grew at a 2.5% annual rate from the previous quarter. That’s below the average 3.1% growth rate since World War II, but better than the 2.1% average since the recovery began in 2009:Q3.
Growing student debt
I was curious to take a look at the growing student debt load and the government’s exposure to potential repayment issues.
Who is holding all those U.S. dollars?
If recent trends continue, in a few months there will be $1.2 trillion in Federal Reserve notes (otherwise known as dollar bills) in circulation. Who is holding all these?
Assessing the Economics of the Ryan Plan
The new House budget proposal has just been released. [0] In the section discussing economic effects, I read the following: