The Truth About Deficit Spending

It's tempting to place partisan blame on why the U.S. has such persistent federal deficits, which results in a large amount of federal debt. Some say it's the Bush era tax cuts, while others blame Obama. But the problem with deficit spending really began around 1970. It's not a new phenomenon, and deficits have persisted during good economic times, as well as bad.

A big issue is that our budget deficits during recent decades have been caused primarily by health care costs and an aging population. In fact, research from the St. Louis Fed demonstrates that Medicare spending, and to a lesser extent, Medicaid, are the primary culprits in creating our deficits. And we can see that raising the highest marginal rates on high-income earners might not solve the issue. Let's explore....565 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.

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