Matthew Dickerson is the director of the Grover M. Hermann Center for the Federal Budget at The Heritage Foundation.
Last week, two important reports were released, shining a light on one of the major challenges facing America excessive government spending that is causing the poor and declining fiscal health of the federal government. This reduces economic freedom and threatens prosperity, making it more difficult for families to live the American dream.
In The Heritage Foundation’s 2021 Index of Economic Freedom, which was released March 5, the results weren’t pretty for the United States. The U.S. received its lowest ranking ever, just 20th in the world in overall economic freedom.
Director, Grover M. Hermann Center for the Federal Budget The sun rises through a bank of clouds behind the Statue of Liberty in New York City on March 7, 2021 as seen from Jersey City, New Jersey. Gary Hershorn / Getty Images
Key Takeaways
While tax revenues are projected to rise above their historical average as a share of the economy, the growth of spending will outpace that growth in revenue.
Over the long term, government spending simply cannot continue growing faster than the economy.
Some recommendations found in the blueprint include reforming benefit programs, preventing out-of-control spending, and maintaining a pro-growth economic policy.