According to the January 23rd press release of the Concord Coalition, a federal budget reform organization, under reasonable assumptions about spending and tax policies budget deficits could easily exceed $6 trillion over the coming decade. Given that a fiscal stimulus package would further expand the deficit, Concord urged that any such legislation be carefully designed to have its maximum effect in the very near future, minimize costs in later years, and provide the greatest stimulus for the amount of spending or tax relief.
Presently, the White House and Congressional leaders are developing a financial stimulus package to help ward off an economic recession in the U.S. And there appears to be a political consensus around fiscal stimulus that is 'targeted, temporary and timely.' If those criteria are scrupulously followed, a fiscal stimulus bill would not present long-term concerns.
We must never lose sight of the larger picture, however; that is, the long-term fiscal condition of our nation. Read the Concord Coalition press release for further insights on expected budget deficits for the coming decade and later.
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