CAMPAIGN TO FIX THE DEBT STILL EXISTS, GETTING CLOWNED ON TWITTER - A big thank you to the Campaign to Fix the Debt for hosting its Twitter chat yesterday. (Plea to our younger readers: If your boss ever suggests a Twitter chat please DO NOT rely on your better judgment and instead let the thing go forward.) The Fix the Debt experience was as amusing as we could hope for, with questions from the existential -- “Is there a single living American other than Erskine Bowles named Erskine?” “How much debt would a woodchuck chuck if a woodchuck could chuck debt?” -- to helpful policy solutions -- “If we harvested the organs of poors and gave them to sick job creators, could we lower healthcare costs AND boost the economy?” -- to those just curious about FTD operations -- “What’s more popular at your board luncheons, the blood of workers or tears of homeless seniors? Asking for a friend”. Thanks, Fix The Debt! [BI]
We do seriously need to continue to work on deficit reduction so that we eventually have a fiscal surplus. The deficit is measured as a deficit to GDP ratio, which is manageable by historic standards and it is going in the right direction.
The debt to GDP ratio is too high. That can be solved using a three pronged approach.
1) Economic growth is the most important because it raises GDP and increases revenue.
2) Controlled spending is important, so long as it does not negatively impact economic growth.
3) Minor revenue increases can be achieved by closing loopholes and asking the wealthiest to pay a little more.
The Senate and House need to use all three tools to fix the debt. Partisan bickering and ideology need to be set aside so that we can do what is best for the country.
The deficits generated by George W. Bush include puting two wars, a prescription drug program and the bank bailout on the credit card will take years to overcome. President Obama has cut the deficit in half this year which helps slow down its trajectory. The deficits in 09 and 10 were caused by the Bush recession and the need to stimulate the economy. President Hillary Clinton will continue deficit reduction after she is elected.