Posts tagged Deficit
Editor’s Note: Reed Davis joins Logarchism as a regular contributor with this article. Reed became interested in U.S. budget and economic matters back in 1992, the first time that he remembers the debt becoming a major issue in a presidential election. On that subject, he maintains a blog on the US budget, and a companion website.
The Battle of the Budget continues to rage in Washington, DC. How bad are things, really? How hard would it be for us to balance the budget?
The U.S. Budget for fiscal year 2012 was released on February 14, 2011. As in prior years, it included the Analytical Perspectives which contains a section on the long-run budget outlook. I’ve followed these long-run outlooks since at least the 2001 Budget and I’ve been impressed that all have openly projected increasing pressures on the budget at the end of the long-run (typically 75-year) window. Still, there was a large improvement in the budget outlook in this year’s edition. Let’s look at the reasons for that improvement, and what it means for the current long-run budget outlook.
The Republicans in Congress continue to clamor for a deficit increase of a quarter-trillion dollars in 2011, despite promises of more fiscal responsibility.
Regarding the Republican plans, Senator John Kerry (D-MA) told CNN today “I hope Americans will understand how craven and empty and hollow and contradictory the Republican position is.” Senator Orrin Hatch (R-UT), when asked if Republicans can cut the deficit and show fiscal responsibility, responded “I don’t think we can.”
I’ve worked out a solution, at least given the parameters in the article. I know that some of you will attack this exercise, saying the basic premise is flawed, but I feel that’s just a diversion. Roll up your sleeves and get to work.
I’d be interested in seeing what other Logarchism guests come up with as a proposed solution. Maybe someone will volunteer to compile our suggestions in some way and see what areas of agreement (and disagreement) we have.