Economics

Lessons From The Hoover Policy Boot Camp

Contributing Scholar: John Cogan

Federal Entitlement Programs and the Fiscal Challenge

Federal entitlement program spending has ballooned over the past 60 years and is the main driver behind the growth in size of the US federal government and federal debt and deficits. This unsustainable fiscal path leads to a dead end of crushing tax increases, spiraling interest costs, glacially slow economic growth, and benefit restrictions.

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Big Government, High Taxes, and Rising Debt: America’s Fiscal Crisis Explained

Comment

Published February 20, 2024

Over the next decade, the expanding federal debt, driven by chronic deficit spending is set to result in interest payments comprised of 40% of all revenue from personal income taxes. This means enormous amounts of taxpayer dollars will flow to creditors and foreign governments rather than national priorities like the military, schooling, healthcare, and support for those in need. Current projections indicate extreme tax hikes may not even keep pace with rising interest costs. Unless real reform can be implemented, the United States will find itself in the midst of an economic catastrophe.

Additional Resources:

Watch "Factors that Promote Economic Prosperty" with John Cogan. Available here.
Watch "The Negative Effects of High Taxes" with John Cogan. Available here.

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