Feldstein Says U.S. Projected Deficits Are 'Terrible'

The video discusses the implications of persistent $1 trillion deficits, referencing the Elmendorf chart and comparing current trends to those during Reagan's presidency. It highlights the sharp increase in deficits due to recession and tax changes, and the unexpected success of Paul Volcker in reducing inflation. The current national debt to GDP ratio is examined, with projections indicating a rise to nearly 100% in the next decade. The video concludes with a discussion on funding infrastructure spending through a combination of federal, state, local, and private investments.

What is the significance of the Elmendorf chart in the context of economic deficits?

• It predicts future stock market trends.

• It compares different countries' economic policies.

• It illustrates the persistent $1 trillion deficits.

• It shows the historical GDP growth rates.

During the Reagan era, what were the two main reasons for the sharp increase in deficits?

• Increased military spending and tax cuts.

• Recession and tax bracket adjustments for inflation.

• Rising healthcare costs and education spending.

• High unemployment rates and trade deficits.

How did Paul Volcker's actions impact inflation during the Reagan years?

• He maintained inflation at a steady rate.

• He succeeded in reducing inflation faster than expected.

• He failed to control inflation effectively.

• He increased inflation rates significantly.

What is the projected national debt to GDP ratio in the next 10 years according to the Congressional Budget Office?

• 150%

• 77%

• 50%

• 100%

What is the proposed plan for funding infrastructure spending?

• Cutting other government programs to reallocate funds.

• Increasing taxes to cover all costs.

• Using a mix of federal, state, local, and private investments.

• Relying solely on federal government funding.