Federal Reserve Chairman Ben Bernanke Highlights Unsustainable Debt

Stephen Keen / June 09, 2010

Testifying before the House Budget Committee today, Federal Reserve Chairman Ben Bernanke noted:

Even after economic and financial conditions have returned to normal, however, in the absence of further policy actions, the federal budget appears to be on an unsustainable path. A variety of projections that extrapolate current policies and make plausible assumptions about the future evolution of the economy show a structural budget gap that is both large relative to the size of the economy and increasing over time.

Chairman Bernanke joins a large and growing chorus of voices from both left and right calling attention to the unfortunate truth that even after the recession is over, and the massive deficit spending in response to the downturn has ceased, the country will remain on an unsustainable fiscal course. (more…)