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Tuesday, October 04, 2011

"The Biggest Policy-Related Threat"

Greg Ip notes that fiscal policy will be working against the recovery in coming months:

You know, if it weren't for the politicians, the economy would have a fighting chance. ...In America, the biggest policy-related threat is the fiscal tightening that will happen automatically in the next four months as prior stimulus expires and legislated cuts to discretionary spending bite. Barack Obama has proposed $447 billion in new or renewed stimulus to neutralise that threat, but it requires an ambitious deal in Congress’ super committee, and odds of such a deal by its November 23rd deadline are shrinking. ... A global economy ... is being betrayed by politics. ...

The unemployed were abandoned long ago, and Congress isn't going to do anything meaningful to help now.

    Posted by on Tuesday, October 4, 2011 at 02:25 AM in Economics | Permalink  Comments (34)


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