, Columnist
If Only Congress Would Focus on the Deficit That Matters
The metric that economists prefer suggests America’s fiscal health may be even better now than before the pandemic.
The borrowing never ends.
Photographer: Andrew Harrer/Bloomberg
This article is for subscribers only.
All the fearmongering in Washington over the $1.5 trillion federal budget deficit hides a truth few politicians would admit — that hefty headline number you hear so much about is an unreliable measure of US fiscal health.
Savvy economists prefer what’s known as the primary deficit, which is the overall shortfall minus what the government spends each year on interest payments. At $637 billion, this measure is smaller, less frightening, in line with recent history and — more importantly — shrinking, having narrowed from $1 trillion in 2023.