American fiscal policy is pulling in opposite directions. On one side, politicians have promised to fully fund programs such as Social Security and Medicare; on the other, politicians promise to lower taxes. The two impulses have led to a growing gap between how much money the federal government takes in and how much it promises to spend.
Professor Ananth Seshadri will help explain what this means for the nation on the May 13, 2025, UW Now Live. Seshadri is UW–Madison’s Mary Sue and Mike Shannon Distinguished Chair of Economics and director of the Center for Research on the Wisconsin Economy. He teaches macroeconomics and serves as program director of the master’s program in financial economics.
“I have been at UW–Madison my entire career and love it here,” he says.
My Chief Area of Research Is:
I study macroeconomics and public finance. I have written on the causes and consequences of demographic change; the effects of technological change in accounting for various demographic patterns; the adequacy of retirement savings and on policies that promote equality of opportunity.
Tonight on the UW Now Live, I’ll Talk About:
I’ll start briefly with some facts on manufacturing and then move on to some trends in the U.S. economy — trends in economic growth, spending, and revenue, and about how debts and deficits have evolved over time. I will also touch upon the impact of rising interest costs on investments for the future and the prospects for economic growth.
If You Remember One Thing, It’s:
We have entitlements — promises we made — that are unfunded. Social Security, Medicare, Medicaid, and the Highway Trust Fund are all slated to become insolvent starting eight to 10 years from now. Politically, there’s got to be a compromise, perhaps spending cuts coupled with tax increases. It is well past time for us to devise a clear policy response to this.
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