Could We Invest the Surplus?

Abstract

Responding to recent claims that looming federal surpluses would disrupt U.S. capital markets if partially invested in private financial assets, this short essay argue that projected surpluses are not so substantial when compared with the likely size of U.S. capital markets at the end of the end of the decade when the bulk of the surpluses are projected to arise. The essay also notes several reasons why Congress should retain discretion to invest in private financial assets under certain circumstances.