How the deficit affects the economy

Listen 17:00
FILE - In this Thursday, Nov. 30, 2017, file photo, the sky over The Capitol is lit up at dawn as Senate Republicans work to pass their sweeping tax bill, in Washington. Congress' last major tax overhaul, three decades ago, was everything this year’s version isn’t. The Tax Reform Act of 1986 won bipartisan support. Its benefits flowed more to low- and middle-income taxpayers than to wealthy individuals and corporations. And it added nothing to the federal deficit. None of that can be said for tax-cut package the Senate passed after the House approved a similar version. (AP Photo/J. Scott Applewhite, File)

FILE - In this Thursday, Nov. 30, 2017, file photo, the sky over The Capitol is lit up at dawn as Senate Republicans work to pass their sweeping tax bill, in Washington. Congress' last major tax overhaul, three decades ago, was everything this year’s version isn’t. The Tax Reform Act of 1986 won bipartisan support. Its benefits flowed more to low- and middle-income taxpayers than to wealthy individuals and corporations. And it added nothing to the federal deficit. None of that can be said for tax-cut package the Senate passed after the House approved a similar version. (AP Photo/J. Scott Applewhite, File)

With all this boost in spending, and the GOP tax bill, we’ll close today’s show with NEIL IRWIN, senior economics correspondent for The New York Times who will explain the role deficits play in the economy.

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