How does Congress react to budget deficit projections?
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Between 1984 and 2003, Congress responded to deficit projections by raising taxes and lowering spending; since 2004, Congress has been less responsive, contributing to a debt-to-GDP ratio near 100%; a new paper by Alan Auerbach and Danny Yagan quantifies this change; returning to responsive fiscal policymaking could prevent federal debt explosion; Auerbach's previous research indicated strong government responses to deficits; current projections suggest a potential for unsustainable fiscal situations if no action is taken; policymakers have shifted away from responsible fiscal actions due to political pain and lack of immediate consequences; the importance of addressing long-term fiscal stability is emphasized.

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https://www.brookings.edu/articles/how-does-congress-react-to-budget-deficit-projections/