Joao Gomes - Faculty Research in Knowledge@Wharton

Who Cares About the Deficit, and Why?

Wed, 25 Feb 2004 14:34:23 EST

The numbers seem staggering: The U.S. federal budget deficit is projected to reach a record $521 billion this year, equaling about one-fourteenth of the federal debt accumulated over the nation’s history. Democrats accuse Bush and the Republican Congress of squandering the surplus achieved in the Clinton years and forcing future generations to pay for today’s spending excesses and tax cuts. But the White House and its supporters insist the deficit, while a record in dollar terms, is not so bad given the economy’s size. Is the deficit a ticking time bomb or not?

The Economic Outlook for 2003: A Promising Start

Wed, 15 Jan 2003 00:00:00 EST

Last year marked the first time in decades that the U.S. stock market had logged three losing years in a row. Will 2003 be better? So far, the signs are encouraging. The Standard & Poor�s 500 rose nearly 6% in the first nine trading days. Historically, the start of January has been a good indicator of full-year performance, though there have been plenty of exceptions. On the down side, the threat of war, the continuing sluggishness of the economy, excess production capacity and debate over President Bush�s $674 billion tax-cut package hang over the market. In short, hold your applause for a few more months.

Brazil: A Heady Mix of World Cup Euphoria, Election Anxiety and Economic Uncertainty

Wed, 17 Jul 2002 00:00:00 EST

On June 30, when Ronaldo redeemed himself and his country by scoring two goals and winning the World Cup, Brazilians celebrated for days and nights on end. Unfortunately, the party is now over and the contest is no longer about sports but politics. In October, Brazil will hold a presidential election whose outcome will play a large role in determining the future direction of Brazil�s struggling economy.