Budget bill would add trillions to U.S. debt and increase inequality, Nobel laureate economists say
Source: CBS News
June 2, 2025 / 4:49 PM EDT
Six Nobel laureate economists said a massive budget bill passed by House lawmakers last month and backed by President Trump would weaken key safety-net programs while greatly lifting the federal debt. The tax and spending package, which Republicans have dubbed the "one big beautiful bill," would hurt millions of Americans by slashing Medicaid and food stamps, the economists wrote in a June 2 letter on behalf of the Economic Policy Institute, a left-leaning think tank.
"Even with the safety net cuts, the House bill leads to public debt rising by over $3 trillion in coming years (and over $5 trillion over the next decade if provisions are made permanent rather than phasing out)," the economists state. "The higher debt and deficits will put noticeable upward pressure on both inflation and interest rates in coming years."
The authors of the letter are Daron Acemoglu, Peter Diamond and Simon Johnson of MIT; Oliver Hart of Harvard University; Joseph Stiglitz of Columbia University; and Paul Krugman of City University of New York. Including interest, the House bill would boost the nation's debt by $3.1 trillion, according to the Committee for a Responsible Federal Budget, an advocacy group focused on fiscal policy.
The nation's rising deficit — the gap between annual government spending and revenue — and growing federal debt have sounded alarms on Wall Street, roiling financial markets and raising questions about the country's long-term financial stability. The Trump administration describes the budget package as a "once-in-a-generation opportunity" to cut government spending and drive economic growth.
Read more: https://www.cbsnews.com/news/big-beautiful-bill-house-tax-trump/
Link to Economic Policy Institute LETTER - The upside-down priorities of the House budget
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