Analysis & Indicators

Blog Post

It’s Important to Distinguish Between Short-term Cyclical Deficits and Long-term Structural Deficits

July 27, 2017
Not all deficits are created equal. In designing policy responses, it is important to distinguish between “cyclical” and “structural” deficits. Cyclical deficits are caused by a weak economy. Recessions drive down government revenue because many workers and businesses are no longer earning as much taxable income. At the same time, government spending rises because more people need assistance through programs such as Medicaid, unemployment benefits and food stamps.

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Blog Post

It’s Important to Distinguish Between Short-term Cyclical Deficits and Long-term Structural Deficits

July 27, 2017
Not all deficits are created equal. In designing policy responses, it is important to distinguish between “cyclical” and “structural” deficits. Cyclical deficits are caused by a weak economy. Recessions drive down government revenue because many workers and businesses are no longer earning as much taxable income. At the same time, government spending rises because more people need assistance through programs such as Medicaid, unemployment benefits and food stamps.
Blog Post

Trust Fund Accounting Obscures Fiscal Problems of Social Security and Medicare

July 20, 2017
Every year the trustees of Social Security and Medicare issue detailed reports on the financial status of these programs. While the trustees’ reports consistently warn that both programs face serious shortfalls, the urgency of this warning is often undercut by undue attention to the years in which the Social Security trust funds and the Medicare Hospital Insurance (HI) trust fund are projected to become insolvent.
Blog Post

Doing Nothing is Not a Plan to Fix Social Security

July 19, 2017
Social Security is the largest program in the federal budget, accounting for almost 24 cents out of every dollar spent by the government in 2016. The program consists of two main components: Old Age and Survivors Insurance, which provides benefits to 49 million retired individuals and their dependents, and their survivors; and Disability Insurance, which pays benefits to 11 million workers with disabilities and their dependents.