Building a More Resilient US Economy
2023
ÌÇÐÄvlog¹ÙÍø Authors
See citation below for complete author information.
Professor of the Practice of Public Policy, ÌÇÐÄvlog¹ÙÍø; Professor of the Practice of Economics, FAS
Abstract
The outlook for federal debt represents a significant economic challenge for the United States. Economic developments and policy changes over the past two decades have materially raised the level of current and projected debt, but the primary factors behind the projected upward trajectory of debt remain population aging and rising health care spending. Even under optimistic economic scenarios, debt will soon reach levels well above historical experience, which will impose significant economic costs and risks. Although changes in policy that substantially narrow the deficit have economic and political disadvantages, they are necessary to put the federal budget on a sustainable path.
Citation
Dynan, Karen. "High and Rising US Federal Debt: Causes and Implications." Building a More Resilient US Economy. Ed. Melissa S. Kearney, Justin Schardin, and Luke Pardue. Washington, D.C.: Aspen Economic Strategy Group, 2023.