Journal of Economic Perspectives
ISSN 0895-3309 (Print) | ISSN 1944-7965 (Online)
Budget Deficits: Rhetoric and Reality
Journal of Economic Perspectives
(pp. 73–93)
(Complimentary)
Abstract
Whatever the real or imagined ills of the economy, the news media, most politicians and a fair proportion of the economics profession are quick to point to the culprit: "the budget deficit." No matter that few appear to know or care precisely what deficit they are talking about or how it is measured. No matter that few bother to explain in terms of a relevant model just how government deficits may be expected to impact the economy. No matter that few offer any empirical data to sustain their judgments. I believe there are serious problems with our fiscal policy. These relate to fundamental national priorities and the provision of public goods, now and for the future. But the current size of the federal deficit is not "our number one economic problem," if indeed it is a problem at all.Citation
Eisner, Robert. 1989. "Budget Deficits: Rhetoric and Reality." Journal of Economic Perspectives 3 (2): 73–93. DOI: 10.1257/jep.3.2.73JEL Classification
- E01 Measurement and Data on National Income and Product Accounts and Wealth; Environmental Accounts
- E23 Macroeconomics: Production
- E24 Employment; Unemployment; Wages; Intergenerational Income Distribution; Aggregate Human Capital; Aggregate Labor Productivity
- E31 Price Level; Inflation; Deflation
- H62 National Deficit; Surplus
- H63 National Debt; Debt Management; Sovereign Debt