Attention Economy


Friday, December 21, 2018

Debt, Deficits and Fiscal Solvency

US fiscal profligacy may create a long-term debt sustainability problem:
http://www.ut.edu/uploadedFiles/Academics/Business/Economics/TBEFall2018.pdf

When Nations Don't Pay their Debts
https://www.richmondfed.org/-/media/richmondfedorg/publications/research/econ_focus/2018/q3/feature2.pdf

A Politics of Public Goods
Eli Lehrer notes:
“Although federal budgets have grown by trillions of dollars over the past half-century, one activity of government has become steadily less substantial: the percentage of the federal budget and the share of the national wealth spent on public goods. The provision of things like clean air, national defense, basic scientific research, and roads — things, in short, that benefit the great bulk of the population through their very existence — has long been a core state function. The shift in spending away from these goods and increasingly toward social-insurance programs has correlated both with the growth of the state and a decline in the respect Americans have for it.”


A debt crisis is coming. But don’t blame entitlements