Analysis & Indicators

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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

Concord Asks Debate Commission for a Fiscal Focus

October 06, 2015

The Concord Coalition is urging the Commission on Presidential Debates to devote a significant portion of debate time next year to the candidates’ plans for dealing with the nation’s growing fiscal difficulties.

While the United States faces many challenges, Concord leaders said, “the nation’s unsustainable budget policy hangs over all of them, because it affects the resources that can be devoted to competing priorities and the size of the future economy that will be called upon to produce those resources.”