America is approaching dangerous fiscal tipping points where debt grows faster than our ability to service it, potentially triggering market panic, banking crises, and a deep recession. While some experts believe strong economic growth could help address the debt crisis, they acknowledge that no realistic growth rate can solve the problem alone because both revenue and spending programs increase with economic growth. The position of the United States as the international financial system’s "safe asset provider" makes its unprecedented debt and deficit levels particularly concerning, as no previous safe asset provider in history has operated with such fiscal imbalances.
Learn more about the launch of the Hoover Institution’s Fiscal Policy Initiative.
WATCH THE VIDEO
Featuring:
- Marc Goldwein, Committee for a Responsible Federal Budget
- Michael Boskin, Hoover Institution
- Paul Schmelzing, Boston College
