REAL WORLD EVENT DISCUSSIONS

Deficit is set to heal itself

POSTED BY: KPO
UPDATED: Thursday, April 5, 2012 07:49
SHORT URL:
VIEWED: 533
PAGE 1 of 1

Thursday, April 5, 2012 7:14 AM

KPO

Sometimes you own the libs. Sometimes, the libs own you.


Ezra Klein:

Quote:


That’s not because we don’t have to get the problem under control; it’s because I’m pretty sure we will. Why? The budget deficit is unique: If Congress is unable to agree on a remedy, the problem goes away on its own. Would that all of our challenges were so cooperative.

Federal Reserve Chairman Ben S. Bernanke calls the end of 2012 “a fiscal cliff.” The Bush tax cuts are set to expire. The $1.2 trillion spending sequester, enforcing cuts in the defense and domestic budgets, is set to go off. Various stimulus measures -- including the payroll tax cut -- are scheduled to end. “Taken together,” writes the Committee for a Responsible Federal Budget, “these policies would reduce ten-year deficits by over $6.8 trillion relative to realistic current policy projections -- enough to put the debt on a sharp downward path.”

In fact, if Congress gridlocks -- and what does Congress do these days but gridlock? -- we face the prospect of too much deficit reduction too fast. The Congressional Budget Office estimates that barreling over the fiscal cliff would increase unemployment by 1.1 percent in 2013.



Quote:

Nevertheless, I’m confident that we will, one way or another, muddle through. Because when it comes to the deficit, Congress really has two choices: Do something to solve it, or do nothing and let that solve it. The same can’t be said for issues such as infrastructure and loose nukes and climate change and preparing for pandemic flu. On those questions, congressional inaction isn’t enough to make the problem disappear. So those are the issues I worry about.


Article here: http://www.bloomberg.com/news/2012-04-04/don-t-worry-about-deficit-tha
t-will-heal-itself.html

NOTIFY: Y   |  REPLY  |  REPLY WITH QUOTE  |  TOP  |  HOME  

Thursday, April 5, 2012 7:49 AM

NIKI2

Gettin' old, but still a hippie at heart...


Yup. Not to mention what it will do to us as a country if all the cuts of the Ryan budget go through... THAT should be fun!



NOTIFY: Y   |  REPLY  |  REPLY WITH QUOTE  |  TOP  |  HOME  

YOUR OPTIONS

NEW POSTS TODAY

USERPOST DATE

OTHER TOPICS

DISCUSSIONS
In the garden, and RAIN!!! (2)
Thu, November 20, 2025 18:03 - 6356 posts
Residential Schools
Thu, November 20, 2025 18:00 - 98 posts
Science given the boot at White House
Thu, November 20, 2025 17:59 - 246 posts
Trump
Thu, November 20, 2025 17:58 - 25 posts
Cry-Baby Trump
Thu, November 20, 2025 17:56 - 128 posts
Trunp loses again in Court
Thu, November 20, 2025 17:55 - 869 posts
Trump Is Destroying Everything He Touches
Thu, November 20, 2025 17:54 - 961 posts
FACTS
Thu, November 20, 2025 17:53 - 674 posts
Russia Invades Ukraine. Again
Thu, November 20, 2025 17:20 - 9349 posts
Punishing Russia With Sanctions
Thu, November 20, 2025 16:51 - 615 posts
Russian losses in Ukraine Now At 1 Million Killed Or Wounded
Thu, November 20, 2025 16:38 - 1279 posts
On the Epstien Situation: The best comment I've seen after any article since the beginning...
Thu, November 20, 2025 16:16 - 12 posts

FFF.NET SOCIAL