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Will Biden Pursue a “Grand Bargain”?
When Biden enters office, the deficit for Trump’s last year in office could eclipse 4 trillion. This number is not just large, but over double the largest in history. While mostly due to the 2020 Stimulus, Trump’s changes to taxes and military spending, the yearly structural deficit stands at about 1 trillion in times of below average unemployment. A simple budget with no adjustments could balloon to at least 1.2 trillion because of economic conditions.
With a 4 trillion dollar deficit, there will be massive pressure to immediately address it. From nearly all quarters, the overwhelming…