U.S. deficit control and private-sector wealth

Joëlle J. Leclaire

Journal of Post Keynesian Economics, 2008, vol. 31, issue 1, 139-149

Abstract: For over 30 years, American congresses and presidencies have consistently worked to reduce federal budget deficits. These efforts at deficit reduction/surplus generation did indeed contribute in many instances to lower federal budget deficits and even created surpluses. An apparent problem with deficit reduction/surplus generation is that every time government deficits are reduced, private-sector wealth also falls. Thus, growing levels of American household and business indebtedness are closely associated with the policy of reducing federal deficits. One way of alleviating the problem of growing household indebtedness is to reverse the policy aim of reducing federal budget deficits.

Keywords: deficit; fiscal policy; private wealth; surplus (search for similar items in EconPapers)
Date: 2008
References: Add references at CitEc
Citations: View citations in EconPapers (1)

Downloads: (external link)
http://mesharpe.metapress.com/link.asp?target=contribution&id=U67555G2UV224785 (text/html)
Access to full text is restricted to subscribers.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:mes:postke:v:31:y:2008:i:1:p:139-149

Ordering information: This journal article can be ordered from
http://www.tandfonline.com/pricing/journal/MPKE20

Access Statistics for this article

More articles in Journal of Post Keynesian Economics from Taylor & Francis Journals
Bibliographic data for series maintained by Chris Longhurst ().