Renewing AmericaRenewing America

Must Read

PrintPrint CiteCite
Style: MLAAPAChicago Close


The Breakthrough Institute: Taking on the Three Deficits

November 2011


This report explains why U.S. policymakers must reduce all three deficits, not just the budget deficit, through targeted public investment in innovation, productivity, and competitiveness.

Federal policymakers are consumed by a debate over how to reduce the nation's budget deficit, which some argue is critically important to the nation's economic future. As the President's National Commission on Fiscal Responsibility and Reform noted in its final report, "America cannot be great if we go broke. Our economy will not grow and our country will not be able to compete without a plan to get this crushing debt burden off our back." Yet an oftentimes myopic focus on the budget deficit has obscured the fact that America actually faces three deficits—the budget deficit, the trade deficit, and the investment deficit—that, if left unchecked, could total over $41 trillion in the next 10 years. Reducing all three deficits, not just the budget deficit, is critical to future economic prosperity

Full Text of Document

More on This Topic

Foreign Affairs Article

Big Ben

Author: Adam S. Posen

The biggest revelation offered by Ben Bernanke’s memoir of his time as chair of the U.S. Federal Reserve is just how much the public, the...

Foreign Affairs Article

What Caused the Crash?

Author: Athanasios Orphanides

Crises are an inevitable outgrowth of the modern capitalist economy. So argues Martin Wolf, chief economics commentator for the Financial...

Foreign Affairs Article

Can Economists Learn?

Author: Alan S. Blinder

A recent book of essays by top economists suggests that many of the lessons of the 2008 financial crisis were ones that should have been...