'The negative economic effects of excessive debt.'
- Higher deficit spending is reinforcing the contractionary influence of monetary restraint.
- The fiscal imbalance may not be reversible since, for the first time since World War II, economic growth hasn’t slowed it.
- Moreover, neither political party is offering a plan to address budget deficits that are set to keep growing.
- The monetary surge of 2020-2021 accelerated inflation, and the monetary restraint needed to control that inflation is reducing living standards.
- The dis-saving of the federal budget deficit now exceeds household, corporate and foreign saving, resulting in negative net national savings.
- As the budget deficit mounts, its benefits will be increasingly brief while longer-term negative effects grow more pronounced.