Analysis: U.S. cuts deficit without facing long-term problem

02/12/2013 | Economist (tiered subscription model), The

The U.S. is cutting its budget deficit, but Congress' inability to control spending on entitlements means public debt will increase to 87% of gross domestic product by 2023, up from 73%, according to The Economist. "Cutting discretionary spending is politically appealing because it arouses less anger than cutting entitlements or raising taxes, and because the specifics are left to congressional negotiators each year," the magazine notes. "Yet it is hardly ideal for the economy."

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Economist (tiered subscription model), The

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