In the 1990s, Switzerland experienced a fiscal crisis which resulted in accelerating national debt. However, as Justin Bogie, Senior Policy Analyst in Fiscal Affairs for The Heritage Foundation, writes:
“…the Swiss budget for 2020 will have a $615 million surplus, even after 2019 tax and pension reforms lowered revenues and raised spending.”
“If the U.S. ran a surplus like Switzerland’s in 2018,” he goes on to say, “our government would have a $117.5 billion bonus. That’s a lot of cheddar—or, should we say, a lot of Emmentaler. ”
Bogie says that the secret of Switzerland’s success is that they follow effective fiscal rules, collectively known as the “Debt Brake.”
For more on the effectiveness of the Swiss Debt Brake and how it compares with U.S. budget policy, please read the complete article here.