Journal Article

The changing American attitude toward debt, and its consequences

Abstract: The American people no longer view the government budget deficit as a significant problem. This represents a radical change in the attitude of Americans from thirty years ago, when even small deficits were viewed with great concern. People are not much concerned about our long string of trade deficits, either. Moreover, there is no perception of the linkage between the federal budget deficit and the trade deficit. ; The author describes the factors that have produced this change in American values, drawing on his own experience in government. He goes on to assess the consequences, past and future, for the U.S. economy, noting that societys values help to shape the macroeconomic options open to a democratic government.

Keywords: Debt; Budget deficits;

Bibliographic Information

Provider: Federal Reserve Bank of Boston

Part of Series: New England Economic Review

Publication Date: 1990

Issue: May

Pages: 34-39