The U.S. Deficit/Debt Problem: A Longer-Run Perspective

The U.S. debt has surpassed 100 percent of gross domestic product (GDP). This debt burden is due in part to the extremely large deficits incurred by attempts to mitigate the effects of the financial crisis, the relatively deep and prolonged recession, and the anemic economic recovery. Given the emphasis on the financial crisis and its aftermath, it is important to realize the U.S. deficit/debt problem began over four decades ago. This longerrun perspective suggests that the recognition of the seriousness of the problem and the need for fundamental change eventually would have occurred. The recent financial crisis merely brought the U.S. deficit/debt problem to the public’s attention sooner rather than later. The analysis here shows that the U.S. deficit/debt problem began during the early 1970s when the government started to increase spending significantly without a corresponding increase in tax revenue. This article also analyzes various aspects of government revenues and expenditures to better understand the different elements of the debate on preventing the U.S. deficit/debt problem from becoming the U.S. deficit/debt crisis.

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Political Intelligence

Political Intelligence is an independent European public affairs consultancy, with offices in Brussels, Edinburgh, Lisbon, London, Madrid and Rome. We provide our clients with practical public affairs advice that helps them to achieve their business objectives. Our professional and dedicated consultancy service includes political monitoring & intelligence, stakeholder engagement programmes, political and policy research, strategic advice, event management and public affairs training and trade associations, coalition and groupings management.

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whitePaper | August 11, 2022

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Your cloud tech guide for government

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The Role of Monopoly in America’s Prescription Drug Crisis

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Political Intelligence

Political Intelligence is an independent European public affairs consultancy, with offices in Brussels, Edinburgh, Lisbon, London, Madrid and Rome. We provide our clients with practical public affairs advice that helps them to achieve their business objectives. Our professional and dedicated consultancy service includes political monitoring & intelligence, stakeholder engagement programmes, political and policy research, strategic advice, event management and public affairs training and trade associations, coalition and groupings management.

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