Peter_Puget Posted November 17, 2003 Posted November 17, 2003 If the tax cuts were in fact the primary factor in the rise of deficits, then one would expect U.S. fiscal policy to be moving in a direction opposite to that of other countries that have not cut taxes. In fact, as a new study by the Federal Reserve Bank of St. Louis notes, the fiscal stance of all major countries pretty much moves in tandem. Deficits fell sharply in the late 1990s in all major countries, with many moving into surplus. Since 2000, surpluses have vanished everywhere except Canada, and deficits equivalent to those here (as a share of GDP) have emerged everywhere. St. Lois Fed Link PP Quote
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