The U.S. Budget Deficit Has Rocketed. Does It Matter?
Germany and Britain have lower shortfalls, but their economies aren’t better off.
The U.S. federal government’s budget deficit expanded to about $2 trillion in 2023—roughly double what it was in 2022. And there are growing signs that the deficit is acting as a drag on the economy as a whole. The interest on a 10-year bond has risen a full percentage point in the past three months, reflecting an assessment by investors that the long-term outlook for the economy merits some concern.
Adam Tooze is a columnist at Foreign Policy and a history professor and the director of the European Institute at Columbia University. He is the author of Chartbook, a newsletter on economics, geopolitics, and history. Twitter: @adam_tooze
Cameron Abadi is a deputy editor at Foreign Policy. Twitter: @CameronAbadi
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