The latest CBO report shows that the FY2013 deficit will come in at around $642 billion, a dramatic reduction. Naturally, the usual suspects are calling for more “stimulus” spending now that the deficit problem is “solved”. But they should read some critical points raised by Peter Suderman. The “small” deficit is a result of tax hikes, spending cuts and about $200 billion in one-time revenues (Fannie/Freddie dividends and tax adjustments). The “small” deficit will … Read more
Tag Archive: Fiscal policy
I won’t waste much time on this. A new alternative has been proposed to the $1 trillion coin that is, if anything sillier. It’s that the government should just issue IOU’s. Seriously:
Congressional Republicans have said they will demand immense cuts to popular government programs in exchange for agreeing to raise the nation’s authorized borrowing limit of $16.4 trillion.
Stop right there. I highlighted this sentence in just to show you the author’s delusions. … Read more
Peter Suderman makes an excellent point about the Obama Administration’s mantra that “we just want to return to the Clinton-era tax rates; things were pretty good back then!”
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Most of us can agree that the Clinton years, which saw growing median incomes as well as tiny deficits and steady economic growth, were economic good times, and we’d all like to see that sort of economic performance repeated. If that’s the case, then why should we
This is the name of Obama’s supposed economic plan for the next four years. If you’ve swallowed something poisonous and are out of ipecac, you can download the PDF here.
There is literally nothing new in it. It’s simply a distillation of the promises he’s made over the last few weeks. If we’re lucky, most of it won’t happen. If we’re unlucky, some of it will and it will make things worse (one of … Read more
This is good news:
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U.S. debt has shrunk to a six-year low relative to the size of the economy as homeowners, cities and companies cut borrowing, undermining rating companies’ downgrading of the nation’s credit rating.
Total indebtedness including that of federal and state governments and consumers has fallen to 3.29 times gross domestic product, the least since 2006, from a peak of 3.59 four years ago, according to data compiled by Bloomberg. Private- sector borrowing
We already know that much of the so-called stimulus was not stimulus at all. A lot went to simply bolstering falling state revenues to put off their declines. One might argue that investments in research and technology have an economic payoff. But even the most ardent Keynsians has trouble arguing that pure transfer payments are an economic stimulus, especially when they’re mainly shoring up unemployment benefits.
But more and more info is coming out about … Read more