Closing budget deficits is not always the optimal fiscal policy in the short term  or the medium term. Instead, budgets should simply be seen as a tool with which to boost living standards. Sometimes policy needs to move the budget toward a deficit to achieve this; at other times, the budget needs to be moved closer to a balance or surplus.

Reducing budget deficits is too often presented as a key budgetary challenge. Defining fiscal policy this way in the present economic environment, however, is simply bad economic analysis. Instead, the most pressing economic task should be viewed as finally securing a durable return to genuine full employment.



Tax Policy: A Powerful Tool to Advance Racial Equity in New Mexico

In order for every child in New Mexico to reach their full potential, our policymakers need to ensure that the policies in place now and in the future are antiracist. In other words, policies need to improve racial and ethnic equity, not cement current inequities in place. Tax policy is a powerful tool that can help advance racial justice because it outlines who pays their fair share of taxes, who doesn’t, and who benefits most from the way the system is structured.