Thread by @RuleandRuin, 1. It was recently announced that US debt would exceed 100% of [...]

1. It was recently announced that US debt would exceed 100% of GDP and that the 25 ppt surge in debt was the largest annual leap since the 1790s. This news provoked statements of serious concern by neither party and consternation among nobody, because... https://www.wsj.com/articles/u-s-debt-is-set-to-exceed-size-of-the-economy-for-year-a-first-since-world-war-ii-11599051137">https://www.wsj.com/articles/...

U.S. Debt Is Set to Exceed Size of the Economy Next Year, a First Since World War II

U.S. debt has reached its highest level compared to the size of the economy since World War II and is projected to exceed it next year, the result of a giant fiscal response to the coronavirus...

https://www.wsj.com/articles/u-s-debt-is-set-to-exceed-size-of-the-economy-for-year-a-first-since-world-war-ii-11599051137

2. ...none of the dire predictions debt hawks made about what would happen when we crossed this line have come true -- no interest rate spike, no inflationary spiral, no loss of confidence in the dollar. And austerity seems 100% wrong in a pandemic. But.. https://www.nytimes.com/2020/08/21/business/economy/national-debt-coronavirus-stimulus.html">https://www.nytimes.com/2020/08/2...

We Have Crossed the Line Debt Hawks Warned Us About for Decades

The debt of the United States now exceeds the size of its gross domestic product. That was considered a doomsday scenario that would wreck the economy. So far, that hasn’t happened.

https://www.nytimes.com/2020/08/21/business/economy/national-debt-coronavirus-stimulus.html

3. ...conservatism used to entail worrying about worst-case scenarios, which would have been helpful pre-pandemic. And we still face the political problem of raising funds for needed public investments in the face of rising debts https://www.brookings.edu/research/fiscal-therapy-12-framing-facts-and-what-they-mean/">https://www.brookings.edu/research/...

Fiscal therapy: 12 framing facts and what they mean

William Gale offers 12 facts that inspire the analysis and proposals in his new book Fiscal Therapy, which looks at the trouble looming – in the form of rising government debt, and in the way we tax...

https://www.brookings.edu/research/fiscal-therapy-12-framing-facts-and-what-they-mean/

4. My @NiskanenCenter colleagues point out that Baumol& #39;s cost disease means spiraling prices of the most labor-intensive & highly regulated services -- incl child care, health care & education -- can pressure politicians into more anti-market actions

https://en.wikipedia.org/wiki/Baumol%27s_cost_disease#/media/File:US_CPI.jpg">https://en.wikipedia.org/wiki/Baum...

5. So @hamandcheese has announced a new Niskanen fiscal policy initiative to explore structural market reforms aimed at eliminating regulatory capture and exposing cost-diseased sectors to robust innovation and competition. Stay tuned... https://www.niskanencenter.org/announcing-the-niskanen-centers-new-fiscal-policy-initiative-its-the-costs-stupid/">https://www.niskanencenter.org/announcin...

Announcing the Niskanen Center's New Fiscal Policy Initiative — "It's the Costs, Stupid." -...

Addressing prospective fiscal risks requires adopting an equally forward-looking strategic orientation.

https://www.niskanencenter.org/announcing-the-niskanen-centers-new-fiscal-policy-initiative-its-the-costs-stupid/

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