Trump Embarks on a Gigantic Fiscal Experiment: Debate

Typically, during an economic expansion, central governments try to restrain spending and raise taxes to pay down debt accumulated during recessions -- at least that’s the theory. Not this time. Bloomberg View economics columnist Tyler Cowen and Noah Smith met online to debate what’s different now.

Tyler Cowen: I think you’ve noticed that the Trump administration, with support from Congress, has plans to raise the federal debt and deficit. I’ve seen estimates that the tax-cut bill will add at least $1 trillion to the debt over a 10-year period, and for over the next two years Congress just approved about $500 billion in new spending.