Brian Riedl and Shai Akabas discuss the U.S. federal budget, budget negotiations, and why Congress hasn’t addressed the rising national debt—even as it gets worse.
The case for a “grand deal” on the budget has never been more evident: within a decade, annual budget deficits are projected to exceed $2 trillion. Entitlement programs are projected to drive trillions in new government debt over the next few decades. Yet increasing partisanship and political polarization—both in Washington and among voters—have significantly diminished the likelihood of bipartisan cooperation to avoid a fiscal calamity.
Riedl is a senior fellow at the Manhattan Institute and the author of a new report, Getting To Yes: A History Of Why Budget Negotiations Succeed, And Why They Fail. The report analyzes the past 40 years of successful and failed budget negotiations in Congress. Akabas is the director of economic policy at the Bipartisan Policy Center.