It took a hot second, but even entities on the political left have begun to discover how Washington’s uncontrollable spending has made life worse for American families.
In recent weeks, both The New York Times and International Monetary Fund (IMF) — no raging conservatives — have analyzed how persistent budget deficits caused by Washington’s spending have exacerbated inflation woes. The moves suggest a solution underpinned by a return to basic common sense: namely, that if Washington finally gets its own fiscal house in order, families in the Heartland will have an easier job restoring order to theirs.
Deficits Underpinning Inflation
The Times reported on the IMF’s fiscal warnings about Washington’s borrowing. In its evaluation of the American economy, IMF noted that the budget deficit “is out of line with long-term fiscal sustainability” and adds about half a percentage point to the inflation rate.
The Times article also noted what I have reported on at The Federalist for months: the historically large size of our current budget deficits. Citing prior reports analyzing the primary budget deficit — that is, the budget deficit excluding the interest costs paid to finance prior years’ debt — the Times put in perspective the mess Washington has created:
When properly measured, the primary deficit last year was equal to about 5 percent of the economy’s annual output. Data from the nonpartisan Congressional Budget Office [CBO] suggest that it was the sixth-highest primary deficit of any year since 1962; the other five all came during, or
