Since the adoption of a law to that effect in 1917, the debt of the American federal government is subject to a “ceiling.” Barring an agreement from Congress, the current ceiling should be reached during the month of October. This is a structural problem, not a cyclical one. Even if we managed to balance revenue and spending and eliminate budget deficits, it would not spell the end of the basic imbalance in American government finances, which is due to the ever-growing financial obligations stemming from social programs.
Posted on: Mon, 07 Oct 2013 11:13:50 +0000
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