Friday, May 20, 2011

Grow or Cut? Why not both?

I've suggested that the Republican's focus on deficit reduction was both a political move, which they would tread out when convenient for them, (here) and not smart (here)...

AlterNet highlights a piece by Ezra Klein that makes the argument better than I have - Why the Republican's have shifted the conversation... -

An excerpt:

"A little bit of stimulus could buy you a lot of deficit reduction. Imagine if Republicans offered Democrats a 4:1:1 deal: For every $4 of specific spending cuts over the next 12 years, they’d back $1 of tax increases and $1 of stimulus. A deficit-reduction deal that cut $3 trillion would carry $1 trillion in tax increases — so, $4 trillion in total deficit reduction — and $1 trillion in stimulus. Who’s the liberal who’d say no? And yet, that’s a big deficit reduction package. Among the biggest in our history, actually."...

"And even fiscal conservatives should be able to appreciate the fact that the surest way to cut the deficit in a hurry is to grow the economy and put more Americans back to work.

But none of this is even open to consideration, and no one has made any effort to put it on the negotiating table. Part of this is because Republicans are actively opposed to any measures intended to create jobs, and part of it is the result of a political establishment stuck in the wrong conversation."

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