After the Boom, A Bill Awaits

A reversal of fortune is in the cards. After a year-long hibernation, the world salivates at the arrival of the vaccines. The summer season may be one for the record books as demand overwhelms supply in the leisure industries. These short-term forces shield from thought the prodigious debt expansion and monetary largesse that saved the economy. While the US was not alone with expansive economic policies, it was unique with the poorly targeted policies. Most assuredly, growing debt service will conspire with higher tax rates to crimp future demand. These lurking threats may impede the economy’s return to full employment as the polemic on debt washes over Washington.