Jason Furman and Lawrence H. Summers
Who’s Afraid of Budget Deficits?
How Washington Should End Its Debt Obsession
Foreign Affairs, 2019
¿De qué se trata?
The level of US government debt matters, and so does how policy makers address it.
Recommendation
The US budget deficit is approaching $1 trillion. Some view this milestone as ominous, while others see little to fret about, thanks to cheap credit, the ready availability of buyers for US Treasury securities and low inflation. But a preoccupation with cutting expenditures to rein in government overlooks the fact that the real driver of the deficit is a steep drop in revenue due to tax cuts. So say economists Jason Furman and Lawrence H. Summers in this concise but worthwhile treatment of a well-worn topic, which will appeal primarily to policy experts and analysts.
Summary
About the Authors
Former Treasury Secretary Lawrence H. Summers is a professor and president emeritus of Harvard University. Jason Furman is a professor at the Harvard Kennedy School of Government.
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