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The Six Most Important Takeaways from CBO’s New Long-Run Fiscal Forecast

The Congressional Budget Office has just released the 2016 version of its Long-Term Budget Outlook. It’s filled with all sorts of interesting data if you’re a budget wonk (and a bit of sloppy analysis if you’re an economist). If you’re a normal person and don’t want to wade through 118 pages, you’ll be happy to […]

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A Semi-Acceptable Indirect Bailout for Puerto Rico?

I wrote last year about why Puerto Rico got into fiscal trouble. Like Greece and so many other governments, it did the opposite of Mitchell’s Golden Rule. Instead of a multi-year period of spending restraint, it allowed the budget to expand faster than the private sector for almost two decades. As the old saying goes, […]

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Debt, Bubbles, and Reckless Government

As a general rule, I’m not overly concerned about debt, even when looking at government red ink. I don’t like deficit and debt, to be sure, but government borrowing should be seen as the symptom. The real problem is excessive government spending. This is one of the reasons I’m not a fan of a balanced […]

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Higher Taxes Are a Recipe for Higher Spending, not Lower Debt

With both Hillary Clinton and Bernie Sanders agitating for higher taxes (and with more than a few Republicans also favoring more revenue because they don’t want to do any heavy lifting to restrain a growing burden of government), it’s time to examine the real-world evidence on what happens when politicians actually do get their hands […]

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Budget Myths and Facts for the 2016 Campaign

I have a very mixed view of the Committee for a Responsible Federal Budget, which is an organization representing self-styled deficit hawks in Washington. They do careful work and I always feel confident about citing their numbers. Yet I frequently get frustrated because they seem to think that tax increases have to be part of […]

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Greek Politicians Should Learn from Latvia

I wrote last month that the debt burden in Greece doesn’t preclude economic recovery. After all, both the United States and (especially) the United Kingdom had enormous debt burdens after World War II, yet those record levels of red ink didn’t prevent growth. Climbing out of the debt hole didn’t require anything miraculous. Neither the […]

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