A sea of red ink may make it politically difficult for President Trump and Congress to use the traditional tools for stimulating growth if a recession kicks in sometime next year.
Cutting taxes and increasing spending are seen as ways of stimulating the economy to recover from a recession, but that could be difficult with an annual budget deficit soaring above $1 trillion — at a time of positive economic growth.
“There may not be the political appetite to borrow more,” says Marc Goldwein, the head of policy at the nonpartisan Committee for a Responsible Federal Budget (CRFB), which advocates for lower debt.
View the complete August 22 article by Niv Elis on The Hill website here.