Found 124 article(s) for author 'Martin Feldstein'

A Simple Route to Major Deficit Reduction

A Simple Route to Major Deficit Reduction. Martin Feldstein, February 20, 2013, Opinion. “Putting a cap on tax expenditures—those features of the tax code that are a substitute for direct government spending—can break the current fiscal impasse and prevent the dangerous explosion of the national debt. If a cap is combined with entitlement reforms, the government will also be able to reduce tax rates and increase some spending to accelerate the economic recovery. Republicans and Democrats agree that deficits must be cut and the ratio of federal-government debt to GDP reduced. But Republicans want to reduce the deficit by cutting government spending while Democrats…” Link verified April 3, 2014

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The Wrong Growth Strategy for Japan

The Wrong Growth Strategy for Japan. Martin Feldstein, January 17, 2013, Opinion. “Japan’s new government, led by Prime Minister Shinzo Abe, could be about to shoot itself in the foot. Seeking to boost economic growth, the authorities may soon destroy their one great advantage: the low rate of interest on government debt and private borrowing. If that happens, Japanese conditions will most likely be worse at the end of Abe’s term than they are today. The interest rate on Japan’s ten-year government bonds is now less than 1% – the lowest in the world, despite a very high level of government debt and annual budget deficits. Indeed, Japan’s debt is now roughly 230% of GDP…” Link

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The Fed’s Dangerous Direction

The Fed’s Dangerous Direction. Martin Feldstein, January 3, 2013, Opinion. “The Federal Reserve is heading in the wrong direction. What the central bank describes as “unconventional monetary policy” is creating dangerous bubbles in asset markets that will lead to higher future inflation and is supporting the explosive growth of the national debt. Its new “communications strategy” will, moreover, only further confuse markets. The Fed’s recently announced plan to buy $85 billion a month of government bonds and mortgage-backed securities will keep long-term interest rates at historic lows, with a 1.6% yield on 10-year Treasuries and a negative yield on 10-year TIPS…”  Link verified April 3, 2014

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The Tax Hike Canard

The Tax Hike Canard. Martin Feldstein, January 1, 2013, Opinion. “Five years ago, the United States’ budget deficit equaled 1.5 percent of GDP and its national debt stood at 36 percent of GDP. This year, the deficit will exceed $1 trillion, or seven percent of U.S. GDP. Over the same period, the debt ratio has doubled to 73 percent of GDP. Although the United States’ economic weakness has contributed to the booming deficit and debt ratios, it is only a small part of the whole story. According to projections by the U.S. Congressional Budget Office, without significant reforms, the deficit would still add up to more than five percent of GDP a decade from now, even if the economy were operating at full capacity…” Link verified April 3, 2014

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