A sea of red ink may make it politically difficult for President Trump and Congress to use the traditional tools for stimulating growth if a recession kicks in sometime next year.
Cutting taxes and increasing spending are seen as ways of stimulating the economy to recover from a recession, but that could be difficult with an annual budget deficit soaring above $1 trillion — at a time of positive economic growth.
“There may not be the political appetite to borrow more,” says Marc Goldwein, the head of policy at the nonpartisan Committee for a Responsible Federal Budget (CRFB), which advocates for lower debt.
The debt is already on track to hit 100 percent of the nation’s gross domestic product in the coming decade, and more negative news came Wednesday from the nonpartisan Congressional Budget Office.
Cutting taxes and increasing spending are seen as ways of stimulating the economy to recover from a recession, but that could be difficult with an annual budget deficit soaring above $1 trillion — at a time of positive economic growth.
“There may not be the political appetite to borrow more,” says Marc Goldwein, the head of policy at the nonpartisan Committee for a Responsible Federal Budget (CRFB), which advocates for lower debt.
The debt is already on track to hit 100 percent of the nation’s gross domestic product in the coming decade, and more negative news came Wednesday from the nonpartisan Congressional Budget Office.
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