Treasury Department Warns of Need to Deal with National Debt Limit

Extraordinary measures include drawing on a government employee and retiree Thrift Savings Fund (the G-fund). Treasury appears to spend down the voluntary savings of employees and retirees when debt is constrained by a debt limit…something I would argue is not in the interests of fund contributors…a violation of fiduciary responsibility. Once the debt limit is expanded the funds are returned. This is described here:×61531/. I am working on additional research on topic…available soon.

Published by markskidmore

Mark Skidmore is Professor of Economics at Michigan State University where he holds the Morris Chair in State and Local Government Finance and Policy. His research focuses on topics in public finance, regional economics, and the economics of natural disasters. Mark created the Lighthouse Economics website and blog to share economic research and information relevant for navigating tumultuous times.

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