So you want to reduce the deficit?
Republicans like to talk about reducing the deficit. But they don't do much more than talk, because if we're really serious about bringing down the deficit--projected by the Congressional Budget Office to be about $2 trillion by 2035--we're going to have to do one (or more) of four unpopular things:
1. Cut Social Security
2. Cut Medicare
3. Cut the military budget
4. Raise taxes
All of these are politically unpopular, but without tackling at least one of them--and preferably more than one--we're not going to do much to bring down the deficit. Which means that neither of the two parties are prepared to address any of these things, because, if they did, it would be political suicide. So the next time some Tea Party nut job talks to you about out of control spending, ask that person which item on this list they would be prepared to support.
More on this from NY Times columnist David Leonhardt, who was on NPR's Marketplace today.
My personal take: We need to do both #3 and #4 and there's plenty of fat that could be cut from the first two items as well. This should be done simply because it makes good fiscal sense. But I don't agree with being a hawk on the deficit to begin with, not with the economy the way it is. The priority needs to be getting the economy moving again and, as politically incorrect as it is to say it these days, one of the most effective ways to do this is through government spending.
Much as Republicans like to deny it, Keynes was right. And as much as it may not make sense, the government being in debt isn't quite the same as an individual, household, or business being in debt. The government, after all, owns a printing press and in a time of falling demand and high unemployment, inflation isn't something we have to worry much about for now.
1. Cut Social Security
2. Cut Medicare
3. Cut the military budget
4. Raise taxes
All of these are politically unpopular, but without tackling at least one of them--and preferably more than one--we're not going to do much to bring down the deficit. Which means that neither of the two parties are prepared to address any of these things, because, if they did, it would be political suicide. So the next time some Tea Party nut job talks to you about out of control spending, ask that person which item on this list they would be prepared to support.
More on this from NY Times columnist David Leonhardt, who was on NPR's Marketplace today.
My personal take: We need to do both #3 and #4 and there's plenty of fat that could be cut from the first two items as well. This should be done simply because it makes good fiscal sense. But I don't agree with being a hawk on the deficit to begin with, not with the economy the way it is. The priority needs to be getting the economy moving again and, as politically incorrect as it is to say it these days, one of the most effective ways to do this is through government spending.
Much as Republicans like to deny it, Keynes was right. And as much as it may not make sense, the government being in debt isn't quite the same as an individual, household, or business being in debt. The government, after all, owns a printing press and in a time of falling demand and high unemployment, inflation isn't something we have to worry much about for now.