Magazine
Latest Issue

The stock market’s historic fall was likely noise—the real story is the growing US deficit

This is the worst possible time for unfunded and ideologically-driven tax cuts. Will the Republican fiscal wreckers see sense?

By George Magnus  

US President Donald Trump. Photo: CQ-Roll Call/SIPA USA/PA Images

Trillion dollar budget deficits now loom in the United States. At 5-5.5 per cent of GDP, these will be the highest peacetime deficits since the end of the second world war, save only for the deep recession periods of 1981-83 and 2008-09.

While age-related Federal spending is the structural problem which Congress hasn’t addressed, tax cuts for companies and the better off are the current cause for concern about the budget. We can argue the merits of variants of overdue…

Register today to continue reading

You’ve hit your limit of three articles in the last 30 days. To get seven more, simply enter your email address below.

You’ll also receive our free e-book Prospect’s Top Thinkers 2020 and our newsletter with the best new writing on politics, economics, literature and the arts.

Prospect may process your personal information for our legitimate business purposes, to provide you with newsletters, subscription offers and other relevant information.

Click here to learn more about these purposes and how we use your data. You will be able to opt-out of further contact on the next page and in all our communications.

This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.

We want to hear what you think about this article. Submit a letter to letters@prospect-magazine.co.uk

More From Prospect