Today the Committee for a Responsible Federal Budget released an analysis projecting a deficit of over one trillion dollars for fiscal year 2009. This deficit would be more than twice as large as the 2008 deficit of $455 billion and would represent a post-war record both in nominal terms and as a share of GDP, CRFB said.
In a separate release, the Committee offered its take on fiscal stimulus, putting forth three principles under which any stimulus package should be passed:
- Stimulus should address economic not political objectives,
- Borrowing should only be used for temporary measures, and
- Stimulus should include a mechanism to begin a process for addressing the nation's long-term fiscal imbalances.
Both releases are available at www.crfb.org.
The Committee for a Responsible Federal Budget is a
bipartisan organization committed to educating policy makers and the public
about issues related to fiscal policy. The Committee is located at the New America Foundation. Please
visit www.crfb.org.
