Found 532 article(s) in category 'Fiscal Policy'

Who’s Afraid of Budget Deficits?

Who’s Afraid of Budget Deficits? Jason Furman, Lawrence Summers, January 27, 2019, Opinion, “The United States’ annual budget deficit is set to reach nearly $1 trillion this year, more than four percent of GDP and up from $585 billion in 2016. As a result of the continuing shortfall, over the next decade, the national debt—the total amount owed by the U.S. government—is projected to balloon from its current level of 78 percent of GDP to 105 percent of GDP. Such huge amounts of debt are unprecedented for the United States during a time of economic prosperity.Link

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The Shutdown Could Disrupt The U.S. Economy In A Big Way

The Shutdown Could Disrupt The U.S. Economy In A Big Way. Nancy Koehn, January 8, 2019, Audio, “Will the government shutdown have a long-term impact on the U.S. economy? Nancy Koehn, professor at the Harvard Business School, said that the shutdown could disrupt the economy on both a micro and macro level. “What’s interesting to me as someone who has done a lot of economic work is how we’re beginning to see the cascading consequences,” she said on Boston Public Radio Tuesday. There are individual pains — like farmers not being able to get loans or aid to help cope with the U.S.-China trade war.Link

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To avoid government shutdowns, fix the budget process

To avoid government shutdowns, fix the budget process. Linda Bilmes, January 7, 2019, Opinion, “In the musical “Hamilton,” the protagonists riff on dueling: Aaron Burr: Can we agree that duels are dumb and immature? Alexander Hamilton: Sure. But your man has to answer for his words, Burr. (As we all know, Burr fatally shot Hamilton. Duels were not outlawed until 40 years later). Pressley requests back pay for federal contract workers.  The furloughed contract workers have gone without a paycheck since the start of a partial government shutdown last month. Federal government shutdowns are the modern equivalent of duels — a dumb and immature way to resolve disputes. The current shutdown has closed 25 percent of the government over a dispute that amounts to just .001 percent of the federal budget.Link

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Corruption, Government Subsidies, and Innovation: Evidence from China

Corruption, Government Subsidies, and Innovation: Evidence from China. Josh Lerner, 2018, Paper, “Governments are important financiers of private sector innovation. While these public funds can ease capital constraints and information asymmetries, they can also introduce political distortions. We empirically explore these issues for China, where a quarter of firms’ R&D expenditures come from government subsidies. Using a difference-in-differences approach, we find that the anticorruption campaign that began in 2012 and the departures of local government officials responsible for innovation programs strengthened the relationship between firms’ historical innovative efficiency and subsequent subsidy awards and depressed the influence of their corruption-related expenditures.Link

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