Fiscal Illusion and Entitlements

Source: Ludwig von Mises Institute
by Gary Galles

“As the State of the Union address and subsequent pronouncements have made clear, American politics is in the firm grip of fiscal illusion. One example is President Biden’s bragging that ‘In the last two years, my administration has cut the deficit by more than $1.7 trillion — the largest deficit reduction in American history,’ which implied that we should only look at a short run effect which had little, if anything, to do with the policies he adopted, in evaluating his fiscal policy. However, he did not mention that the CBO estimates that the average yearly federal deficit over the next decade will be $1.6 trillion (under current policies, not including any expansions that have not yet been enacted), which implies his current policies continue to massively rip off future generations.” (03/09/23)