The Boy Who Cried Wolf About Government Debt —Yeva Nersisyan, L. Randall Wray

In a New York Times editorial, David Leonhardt recounts Aesop’s apocryphal story about the boy and the wolf, warning that while deficit hawks have so far been wrong, the growing government debt will eventually bite. He reports the economic plans of both presidential candidates would add to the debt that will soon exceed GDP and grow to 130 percent of annual output under a President Harris, or 140 percent with a Trump presidency.

The story of the boy and the wolf was a fable, although it was within the realm of possibility. The fable of the debt wolf is not. While there are real world wolves—Leonhardt mentions climate catastrophe and autocratic leaders, and the authors would add rising inequality and the concentration of economic and political power in the hands of billionaires.

Levy Economics Istitute
Policy Note 2024/1 | October 2024

The Boy Who Cried Wolf About Government Debt
Yeva Nersisyan, L. Randall Wray