Congressional Budget Office Director Douglas Elmendorf said that unless Congress gets the federal budget under control, stimulus spending policies will be a “drag” on the economy in the future as the government struggles to pay the increased debt.
“If cuts in taxes or boosts in spending that stimulate the economy in the short run are not offset by some later tightening of fiscal policy, then the extra debt that is accumulated will be a drag in the long run,” Elmendorf told the Senate Budget Committee on Tuesday.
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