In the last two months, the U.S. Federal Reserve has underwritten every single dollar borrowed by the U.S. government, and then some, becoming the biggest single lender to the federal government along the way. And now, Federal Reserve Chair Jerome Powell has told Uncle Sam to get out there and spend! Reuters has the […]
Why have so many politicians and bureaucrats responded to the coronavirus pandemic by shutting down so much commerce that millions of Americans have been thrown out of work? Economist John Cochrane answers that question and doesn’t mince words in describing the government failure that is creating the coronavirus recession.
Do you remember life before the coronavirus epidemic? Like back in September 2019, when the Social Security Trust Fund was the largest creditor to the U.S. government? The venerable trust fund’s long reign as the biggest single lender of money to the U.S. government has come to an end, because Uncle Sam has a […]
Thanks to the coronavirus recession, the U.S. government is on track to borrow more money in 2020 that it will collect in taxes as it cranks up its deficit spending to unprecedented levels. That’s the best estimate of the Congressional Budget Office, which finally weighed in on the fiscal impact of the emergency spending […]
After approving another multi-billion dollar coronavirus relief bill, Senate Majority Leader Mitch McConnell made big public policy news when he argued in a radio interview that states seeking bailouts to cover the costs of their underwater government employee pensions should instead have the ability to declare bankruptcy to restructure their unsustainable liabilities.
The fiscal impact of the federal government’s coronavirus relief measures is likely to be dramatic.
Long after the pandemic ends, the debt accrued from the government’s response will still be with us.
Crises have a way of exposing who politicians think they really work for. The coronavirus epidemic in the United States is no different in providing examples of how politicians are pitching changes to the Tax Cut and Jobs Act of 2017 to gain favor among those they seek to provide aid in future elections, […]
Before the coronavirus pandemic and the response to it triggered an economic meltdown, the U.S. federal government was planning to spend nearly $4.8 trillion in its 2020 fiscal year. Last week, President Trump signed a $2.3 trillion relief package aimed at mitigating an economic disaster. How the government will be spending such a gargantuan […]
“Flattening the curve.” Those three words describe the motivation that many governments in Europe and several state governments within the United States have used to justify shutting down nearly all commerce and public gatherings within their jurisdictions as they seek to slow the rapid spread of coronavirus infections to keep from overwhelming their limited […]