What a pleasant surprise: the federal budget deficit is shrinking much faster than had been projected.
Because the federal budget deficit is shrinking so fast, many economists are cautioning that it's coming down too fast, too soon. It appears to give us a bit of breathing space -- even though our problems are far from over.
"WASHINGTON — Since the recession ended four years ago, the federal budget deficit has topped $1 trillion every year. But now the government’s annual deficit is shrinking far faster than anyone in Washington expected, and perhaps even faster than many economists think is advisable for the health of the economy."
“It’s good news for the federal budget deficit and bad news for the jobs deficit,” said Jared Bernstein of the Center on Budget and Policy Priorities, a left-of-center research group in Washington. “I’m more worried about the latter.”
Let's hope that we heed the call to pay more attention in the future.
Here's the full story:
U.S. Budget Deficit Shrinks Far Faster Than Expected