C’mon, let’s stimulate now and cut spending later
It’s also what makes the ongoing jobs-versus-austerity debate so frustrating. What we really need is to be bolder on both jobs and austerity, by pursuing a combination policy.
Additional stimulus is required because the labor market remains extremely weak. Delayed deficit reduction is also needed to reduce uncertainty over how the federal government will navigate its perilous fiscal path — and to boost the chances of enacting more stimulus despite the looming debt limit.
To appreciate the potential of the combination approach, look no further than the plan offered by the Domenici-Rivlin debt-reduction task force, which proposed more than $600 billion in stimulus in one year — far more than I have seen from any serious proposals for a naked stimulus (not linked to deficit cutting). What’s most remarkable about the upfront stimulus in Domenici-Rivlin is that it was supported by Republican task- force members, because it was combined with delayed deficit reduction. When was the last time you saw Republicans embrace such a large stimulus proposal?
Blowback
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Alternate headline:
Peter Orszag
C’mon, lets’s all be stupid all the time, like me!
Gatsu on May 23, 2012 at 3:03 PM
Just one more bundle of dope, and then I’m quitting. I’m totally serious this time.
forest on May 23, 2012 at 3:06 PM
Drinking game: listen to lefty radio or read lefty sites on economic issues and every time you hear, “Of course we should deal with the deficit; we’ll just do it tomorrow! Swearsies!” Drink a shot.
p.s. don’t plan on driving anywhere for the following 24 hours.
thirtyandseven on May 23, 2012 at 3:07 PM
Addicted to repeat over and over.
derecho on May 23, 2012 at 3:08 PM
Yeah, we kinda tried that in 2009. Failed miserably.
The standard lefty response of “Well, it just wasn’t enough!” ain’t gonna fly.
teke184 on May 23, 2012 at 3:08 PM
And you can take those future spending cuts to the bank, baby!!!
Kataklysmic on May 23, 2012 at 3:09 PM
Later you’ll be in the abyss.
Lefties and righties never pay the piper…but the piper will collect…that is fer sure.
Schadenfreude on May 23, 2012 at 3:09 PM
Oh I don’t know about that, a hospital trip would surely be in store about 1/32 into that game….
Gatsu on May 23, 2012 at 3:10 PM
Errr, you’re equating jobs with government deficit spending? But, no jobs is why you want to spend more money, right? And, the whole notion of more spending and more austerity… at the same time… wow! Why didn’t I think of that!! Now, please ‘splain how more spending and more austerity don’t, you know, cancel each other out??!! I’ve gotta’ be missing something.
littleguy on May 23, 2012 at 3:12 PM
For some reason I’m reminded of the scene from Dumb and Dumber with Harry and Lloyd and the suitcase full of IOUs.
Kataklysmic on May 23, 2012 at 3:12 PM
Peter Orszag will gladly pay you on Tuesday for a hamburger today.
Hesiodos on May 23, 2012 at 3:15 PM
I bet Peter Orszag skips the foreplay too.
portlandon on May 23, 2012 at 3:16 PM
Peter Orszag, “Let’s fluke now and worry about the contraception later.” http://www.nypost.com/p/news/national/white_house_budget_director_ditched_VeLLOyVXipr8EChlm33gfJ
Capp on May 23, 2012 at 3:17 PM
Headline = Bill Clinton pickup line.
viking01 on May 23, 2012 at 3:19 PM
Okay, Pete, you want stimulus? Fine. The personal income tax brings in about $1,100 billion, and there’s a huge tax hike coming up January 1st that no one has the political will to avert. So let’s stimulate the economy by declaring 2013 The Year Without Tax: All personal taxes (and associated withholding) are set to zero for next year. We’ll just borrow that $1,100 billion instead; more debt is of course a dumb idea, but we borrowed even more for Porkulus, and in for a penny, in for a pound.
Not only will this serve as a massive cash infusion into the economy, but it will also give people stuck in bad investments a chance to shift their assets without worrying about capital gains. Meanwhile, this November’s election can be about the kind of tax policy we want to have going forward, and Congress can spend 2013 reforming the tax code so that it’s more rational and balanced when taxes resume in 2014. Win-win-win.
Fabozz on May 23, 2012 at 3:24 PM
Let’s stimulate now! Step 1 reduce coporate tax rates, maybe to zero. Step 2, reduce capitol gains, a bunch. Step 3, slash regulations. Step 4, keep Bush tax cuts in place. Step 5, free beer fridays! (my personal favorite)
filetandrelease on May 23, 2012 at 3:30 PM
Krugman has an identical twin?
The Horror
que “The End”
tomg51 on May 23, 2012 at 3:33 PM
Let me check….
Yah, well…that didn’t work out so well the last time. Or the time before that.
Let’s instead reduce tax rates to encourage people in businesses to actually expand to meet growing markets.
ProfShadow on May 23, 2012 at 3:34 PM
Dear future America,
Please fix this enormous, crushing debt that has rendered you a shadow of your former self.
Signed,
Present America
Sgt Steve on May 23, 2012 at 3:36 PM
Forward, lemmings!
Ward Cleaver on May 23, 2012 at 3:40 PM
This from the guy who had his company appropriated by the government to the tune of $45b in preferred stock purchases, and $300b in guarantees.
The Schaef on May 23, 2012 at 3:49 PM
A couple of items he forgot:
1. Raise Federal minimum wage to $25/hour.
2. Give every unemployed person between 18 and 58 year of age a government (union) job.
3. Raise tax rate on income over $100k/year to 100%, no deductions.
4. Abolish the Debt Limit.
5. Ban the use of fossil fuels.
6. Ban the killing of animals for food.
7. Make all Mexican citizens American citizens.
8. Outlaw conservative thought, or anything that actually works.
peski on May 23, 2012 at 3:52 PM
Hey everyone – bring your grievances through the Union Steward!
We are a National Union, aren’t we?
Paying our dues to get security, favors, voting rights and inefficiency.
tomg51 on May 23, 2012 at 3:55 PM
I tried drinking until I was sober. It didn’t work.
But he doesn’t ask himself why it is weak and ignores the paralyzing economic and regulatory policies that are the cause. Dodd-Frank, Obamacare and EPA terrorism are just symptoms of a hostile and out of control government that has cowed businesses into doing nothing. And all we get from Orzag is more overbearing government solutions to government created problems.
RadClown on May 23, 2012 at 4:04 PM
How many times will the Lucy Democrats hold the football for the idiot Charlie Brown Republicans to kick before they learn that the “delayed deficit reduction” will NEVER HAPPEN!
RJL on May 23, 2012 at 4:17 PM
I agree with you Peter, lets get Mayor Bloomberg and Buffet to give say a 10 billion each. 20 billion stimulus is a nice start. By the way, that would leave the mayor with 12 billion and Warren with 34 billion.
reddevil on May 23, 2012 at 4:19 PM
As Obama said, at some point you’ve made enough money.
These two hard leftists should put their money where their mouths are and set up a retirement trust fund that pays them the net national average wage and send a check for the rest to the government.
Then let them demand higher taxes on their $50,000 yearly income.
RJL on May 23, 2012 at 4:31 PM
C’mon guys, give me what I want and we’ll have Jam tomorrow…
Or, if you prefer a less literary concept. The song Mañana by Peggy Lee fits as well.
You’re never going to have the cuts… but you’re hoping maybe if we wait they might not be necessary. Leave it broken forever.
Sorry, not buying it.
gekkobear on May 23, 2012 at 4:32 PM
Sorry, Peter. We’ve heard that line before from the Feds, “We promise we’ll cut spending, just as soon as we get past this next crisis du jour… you can trust us!” And what a surprise, those spending cuts never materialize.
I have a better idea. How about the Feds prove they are capable of cutting spending at all by… you know… actually cutting something… and no, increasing the budget at a smaller rate than previsouly planned does not count as a “cut”. So far, the Feds have proven incapable of actually cutting, so we are no longer buying the promise of future faux cuts.
In short, Mr. Orzag, take your future cuts and shove them up your rusty sheriff’s badge!
gravityman on May 23, 2012 at 4:42 PM
Wise man say: Never trust left-wing propagandist who wear dead muskrat on head.
Travis Bickle on May 23, 2012 at 6:46 PM