REAL WORLD EVENT DISCUSSIONS

Deficit is set to heal itself

POSTED BY: KPO
UPDATED: Thursday, April 5, 2012 07:49
SHORT URL:
VIEWED: 635
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
Do you feel like the winds of change are blowing today too?
Tue, August 18, 2026 09:27 - 4776 posts
Is Elon Musk Nuts?
Tue, August 18, 2026 08:56 - 574 posts
Where the hell is PirateNews when you need him #Pizza
Tue, August 18, 2026 06:53 - 64 posts
Jared Kushner Used Private Email
Tue, August 18, 2026 06:45 - 135 posts
Voters steer Europe to the right
Tue, August 18, 2026 06:35 - 222 posts
Has South Korea replaced the Japanese
Tue, August 18, 2026 06:32 - 55 posts
Bill Maher - " All religions are not alike " .
Tue, August 18, 2026 06:22 - 57 posts
Today in the Tags
Tue, August 18, 2026 06:01 - 71 posts
Russia Invades Ukraine. Again
Tue, August 18, 2026 05:51 - 10937 posts
The Education Failure Facts Thread
Tue, August 18, 2026 05:47 - 98 posts
The Sorrows Of Empire by Chalmers Johnson
Tue, August 18, 2026 05:47 - 117 posts
Asia has defeated the USA using 'Soft Power' ???
Tue, August 18, 2026 05:41 - 121 posts

FFF.NET SOCIAL