Thursday, September 08, 2011

Why I'm Pessimistic

Last month, a big deal was made about a deal to raise the debt ceiling, which involved a major concession by Obama: $917 billion in spending cuts over 10 years. A special committee of lawmakers would be charged with finding another $1.5 trillion in deficit reduction, which could come through a tax overhaul and changes to safety-net programs. That included only $22B in fiscal 2012.

Tonight, Obama just added about $100B in spending for FY2012, as well as tax cuts and more spending in future years. Next time there's a debt ceiling stalemate, Obama should promise to cut spending by $10 trillion in future decades.

2 comments:

JoshK said...

They should have said it's 100T (over 1,000 years). Might sound even better.

Quantivity said...

Have you read Koo? Curious what you think of his perspective?