What Trillion-Dollar Deficit In An Era Of Full Employment Looks Like

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What Trillion-Dollar Deficit In An Era Of Full Employment Looks Like
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Over the past half-decade, in period of solid—if unspectacular—economic growth and historically low interest rates, the federal budget deficit has been going up.

—reducing federal revenues by a combined amount of nearly $7 trillion over the 10 year window following passage of each of the bills.

In effect, Democrats and Republicans engaged in a cynical bargain to buy votes. They gave away money they did not have to lavish benefits on constituents who, for the most part, did not need it.· In December, Congress restored special interest tax breaks to subsidize economic activity that occurred as long ago as 2017. Targeted tax breaks are supposed to create government incentives to encourage specific future economic activity.

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