WASHINGTON (February 16, 2021)—The interim director of the R Street Institute’s Governance Program, Jonathan Bydlak, released the following statement in response to last week’s publication of the Congressional Budget Office’s latest budget outlook:
“The CBO’s updated outlook is a sobering and important reminder that COVID-19 aid, currently being discussed through the reconciliation process, should be carefully considered given its potential impact on our fiscal picture.
We have supported—and continue to support—aid that is timely, targeted and temporary. It is critical that we provide relief to those who need it most, but also that we avoid unaccountable giveaways to favored political interests. Today’s report highlights the risk to our economic recovery at the very moment when we see light at the end of the tunnel.”
R Street Governance Fellow, Nan Swift, echoing Bydlak’s statement, added the following:
“With debt as a percentage of GDP approaching record highs within just the next ten years, we are truly approaching uncharted fiscal territory. Most nations that have seen their debt rise in excess of 100 percent of GDP have struggled to maintain their prosperity and experience economic uncertainty, stagnant job growth, or worse––raging unemployment and economic freefall.”
Members of R Street’s Governance team are available to speak about this latest news and the fiscal response to the coronavirus pandemic.