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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…

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