Because You Have to Do One or the Other, and Politics Favors Deficit Reduction
In writing about the mournful state of the social science of economics, The Dismal Political Economist has stated that one failure is that economics has not adequately informed the American public that it must choose between deficit reduction and unemployment reduction.
“The current goals of economic policy are in direct conflict with one another. The Economist Magazine in its lead story says this.
the two big problems facing America ’s economy: how to get more people back to work, and how to fix the deficit
Everyone agrees with that statement. But the ugly truth is that these two policy goals are in direct opposition to each other. Policy to reduce unemployment will increase the deficit. Policy to reduce the deficit will cause unemployment to be higher than it otherwise would be. The economics profession must confront Americans with that fact and America must choose which goal it wants to achieve. The economics profession must also tell Americans two other substantial but painful truths.”
Now the Washington Post reports on a Congressional Budget Office study on the deficit. It concludes
The report cautions that taking either action now “would probably slow the economic expansion.
The Dismal Political Economist is happy to note that apparently real economists work at the CBO and that the idea that the
It is very clear that the focus of
Reality has a rendezvous with the American public.
Me again, my friend. The DPE, when you said, "Reality has a rendezvous with the American public", you summarized our bleak collective country wide psychosis in a nut shell. Well done my friend. I don't even know you and I love you whatever your gender is. Your capacity to reduce our political reality to short and humerous commentary, and accurately I might add, delights me. Thank you!
ReplyDeleteThank you Anonymous, I have a dog and cat that feel the same way, well, actually the cat is not all that enthusiastic except at meal time.
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