'Economist Mom' Explains Deficit Financing

Submitted by swinn on Tue, 10/16/2018 - 10:18

Diane Lim, a principal at District Economics Group and former chief economist for The Concord Coalition, draws a parallel to personal finances in explaining the federal deficit.

“On a basic level,” she says, “the government borrows for the same reason an individual borrows: When they want to consume, or spend, more than their current income allows. The government deficit is just the difference between annual spending and the government’s annual revenue.”

Despite Strong Economy, an Alarming Increase in the Federal Deficit

Submitted by swinn on Mon, 10/15/2018 - 15:33

WASHINGTON -- The Concord Coalition today warned that the rapidly rising federal budget deficit -- totaling nearly $779 billion in Fiscal Year 2018 -- reflects a structural gap between spending and revenues that is largely ignored in Washington even as it grows worse.

The Treasury Department this afternoon released the figure, which is $113 billion higher than 2017 deficit, along with other data for Fiscal 2018, which ended Sept. 30.

Stealth Spending on Autopilot

Submitted by swinn on Mon, 10/08/2018 - 16:34

“People are arguing about spending bills and they do involve a lot of money and they are important, but the stealth spending spree ... often goes overlooked,” says Concord Coalition Executive Director Robert L. Bixby.

Troubling Increase in Federal Deficit

Submitted by swinn on Mon, 10/08/2018 - 16:17

The federal deficit for Fiscal 2018 totaled $782 billion, an increase of $116 billion over the previous fiscal year, the Congressional Budget Office (CBO) estimated late last week.

Fed Chair Warns of Risk in High Deficits

Submitted by swinn on Fri, 10/05/2018 - 12:01

With the federal deficit projected to exceed $1 trillion in Fiscal 2020, many economists worry that Washington’s heavy borrowing to cut taxes and increase spending could make it more difficult to counteract the next economic downturn.

At an event this week, Federal Reserve Chairman Jerome H. Powell agreed that this is a valid concern: “These last innovations in fiscal policy, at least in the medium term, have probably reduced the amount of fiscal space that we have to react.”

Area Residents to Try Cutting Federal Deficits at Oct. 4 Program at Humphrey School

Submitted by swinn on Tue, 10/02/2018 - 11:47

Students, educators and other residents of the Minneapolis and St. Paul area will try to develop plans to reduce federal deficits in an interactive exercise this Thursday, Oct. 4, at the Humphrey School of Public Affairs.

The “Principles and Priorities” exercise, developed by the nonpartisan Concord Coalition, calls for participants to work in small groups to develop plans to put the federal budget on a more sustainable course. They will discuss and vote on dozens of proposal involving taxes, defense, Medicare, Social Security and other domestic issues.

Welcoming 'Economist Mom'

Submitted by swinn on Tue, 10/02/2018 - 09:56

The latest “Facing the Future”  introduced a semi-monthly segment entitled “Economist Mom,” with Diane Lim, a principal at District Economics Group and former chief economist for The Concord Coalition.

Lim wrote the Economist Mom blog when she was with Concord. The purpose of this radio and podcast segment is -- as it was with the blog --  to help make fiscal responsibility more tangible for everyday Americans.

No Champagne, Please -- the Fiscal New Year's Sobering Outlook

Submitted by jgordon on Mon, 10/01/2018 - 08:52

Today, Oct. 1, marks the beginning of the federal government’s 2019 fiscal year. Fortunately, there will be no government shutdown because Congress has passed and the president has signed five of the 12 annual appropriation bills for Fiscal 2019, along with a continuing resolution that will keep funding going for the rest of the government until Dec. 7. 

More Tax Cuts, Huge Deficits

Submitted by jgordon on Mon, 09/24/2018 - 14:33

The House Ways and Means Committee is looking to pass more deficit-financed tax cuts, most notably by pressing to extend tax cuts passed in 2017 beyond their 2025 expiration dates.

The Congressional Budget Office released a score of that legislation, projecting it will increase the deficit by $631 billion from 2019-2028 and by substantially more over the following years.