In light of changing economic conditions, leading economists Lawrence Summers and Jason Furman emphasize that the previously held belief that 'debt doesn't matter' is no longer valid. They argue that as interest rates rise, the cost of servicing national debt could become untenable if it outpaces economic growth. This shift in dynamics, particularly following fiscal policies like tax cuts and tariffs under Trump, signals a critical need for Washington to reassess its approach to national debt and prioritize fiscal responsibility.
Summers recently told me, 'In a short amount of time, the fiscal picture has gone from comfortably in the green-light region to the red-light region.'
Furman and Summers concluded that the 'economics of deficits have changed' and called on Washington to 'put away its debt obsession and focus on bigger things.'
Collection
[
|
...
]