This paper analyzes an article by Peter R. Orszag entitled "Economic Effects of Sustained Budget Deficits." The paper analyzes the literature on budget deficits to discern their long-term effects. The paper shows how these budget deficits constrain the economy and lead to slower growth over time, though in the short term they may seem to have a salutary effect. The author shows why this is so and links the deficits to interest rates, GDP, and other economic factors.
