America faces two related economic challenges. Rising federal debt will hurt our economy while underinvestment in our human and physical resources will leave many people behind. This book proposes a plan to meet both challenges, strengthening the economy and the nation for the future.
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'Fiscal Therapy' takes a critical look at how and why the U.S. has run up its debt so high in the last four decades, what other countries have done to dig themselves out of this level of red ink, and what needs to be done now if the U.S. is to avoid bankruptcy in the 2050s and beyond.
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In: Tackling the Tax Code: Efficient and Equitable Ways to Raise Revenue. Emily Moss, Ryan Nunn, and Jay Shambaugh eds. The Hamilton Project. January 28, 2020
Federal credit subsidies are one of the largest areas of government activity. However, the Unified Budget treats lending in a highly misleading manner, and federal credit management is inconsistent and deceptive. These oversights have contributed to both the rapid rise of federal lending and the financial crises facing several credit agencies during recent years. Credit reform is a vital issue both to protect the government's huge financial stake and to ensure the success of credit programs.This paper critiques previous proposals for credit reform–each suffering from major implementation problems–and suggests an alternative. The Hybrid Plan combines aspects of earlier proposals and eliminates several disadvantages of each. One could implement the Hybrid Plan under current conditions, but it also is consistent with further improvement in federal credit management.