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Tuesday, April 19, 2011

Cut Spending by $4 Trillion?

I hope this is a slip up as opposed to a slip of the Freudian variety:

... “Both Democrats and Republicans agree that we should reduce the deficit,” Mr. Obama said at a town hall at the Northern Virginia Community College in Annandale. “ In fact, there is general agreement that we need to cut spending by about $4 trillion over the medium term.  And when folks in Washington agree on anything, that’s a good sign.  So the debate isn’t about whether we reduce our deficit.  The debate is about how we reduce our deficit.”
The problem is, there actually isn’t an agreement in Washington to cut spending by $4 trillion. ...

The other problem is that it isn't just about how, it's also about when. I agree we need to tackle this problem, but not before the economy is standing on sturdy legs. Obama does say "medium term," I just wish his actions were consistent with that qualification. Austerity during the initial part of a recovery is not the answer to our long-run debt problem.

    Posted by on Tuesday, April 19, 2011 at 01:08 PM in Budget Deficit, Economics | Permalink  Comments (50)


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