The the Committee for a Responsible Federal Budget (CRFB) has blasted policymakers for abandoning “any semblance of fiscal responsibilty,” as well as disregarding loose targeting, to keep the U.S. federal budget in a balanced order.
With the national debt now outgrowing the size of the U.S. economy, budget watchdog the CRFB has renewed its call for lawmakers to set a target of borrowing against economic growth.
A push to anchor deficits to 3% of GDP has garnered bipartisan support in recent years, with some policymakers suggesting even an agreed upon target is too loose—a mandate should be written into the consititution.
While budget hawks can throw down such gauntlets, the reality of moving the needle on the U.S. fiscal trajectory will take enormous effort. At the time of writing, the U.S. national debt sits just shy of $39 trillion, with the Treasury now forking out more than $1 trillion in interest payments every year.
