Put Off Deficit Cutting For Now
July 2, 2011 1 Comment
…The long-term budget problem in the US is driven mainly by rising health costs, and we have many years to go before this begins to create big budget problems. Thus waiting, say, two years to begin reducing the deficit will not substantially change the probability of big problems down the road. But delaying austerity measures avoids placing a further drag on an already struggling economy, so the likely benefits are relatively large.
About Stephen E. McGaughey
Coral Gables Watch 
Yeah, let’s keep spending money we don’t have. Why? Because we can! Brilliant. How about just saying no to spending and living within our means and letting market forces take us out of the economic malaise we are in. We have been spending money like drunken sailors for almost three years and and it has had virtually no effect except to boost risk asset prices which doesn’t seem to be helping those in need.