Ready For Their Close-Up? Deficit & Debt

The federal deficit and debt have not received much attention on the campaign trail this election cycle. Our August 22, 2016 Weekly Economic Commentary, “Fiscal Policy — String Theory,” provides some insight into the plans floated by both Hillary Clinton and Donald Trump to cut and/or reform taxes and make significant investments in the nation’s infrastructure. The deficit and the debt did get a brief moment in the spotlight during the presidential debate season in September and October 2016, but have since faded into the background amid the general rancor of this year’s campaign. Regardless of who wins the election this week, the new president and new Congress will face a rising deficit and many unanswered questions on the direction of the deficit and debt in the coming years and decades. In this week’s commentary, we will answer several of the most frequently asked questions that come into the LPL Research Department on the deficit and debt.