Economic Effects of Fiscal Policy

  • Report

    The Economic Effects of Waiting to Stabilize Federal Debt

    CBO analyzes the economic effects of waiting to stabilize federal debt. The longer action is delayed, the larger the policy changes needed to stabilize debt. The timing and type of policy would determine its effects on different age and income groups.

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    Effects of Physical Infrastructure Spending on the Economy and the Budget Under Two Illustrative Scenarios

    CBO examined two illustrative scenarios that would boost federal funding for a mix of types of physical infrastructure by $500 billion over 10 years. The two scenarios differ in how the additional spending would be financed.

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    The Effects of Pandemic-Related Legislation on Output

    By providing financial support to households, businesses, and state and local governments, federal laws enacted in response to the 2020 coronavirus pandemic will offset part of the deterioration in economic conditions brought about by the pandemic.

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    Budgetary and Economic Effects of Repealing the Affordable Care Act

    CBO and the staff of the Joint Committee on Taxation estimate that, over the next decade, a repeal of the Affordable Care Act would probably increase budget deficits with or without considering the effects of macroeconomic feedback.

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    Federal Policies and Innovation

    The federal government influences innovation through two broad channels: spending and tax policies, and the legal and regulatory systems. Policymakers have a number of options for spurring additional innovation.

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    Unemployment Insurance in the Wake of the Recent Recession

    Between 2007 and 2010, unemployment benefits expanded nearly five-fold owing to high unemployment due to the weak economy, and decisions by policymakers to increase the number of weeks for which unemployed workers could receive benefits.