Comments on: Have we solved our fiscal problems? A slice of lime in the soda Sun, 26 Oct 2014 19:05:02 +0000 hourly 1 By: traducere romana daneza Mon, 29 Sep 2014 14:01:16 +0000 Possibly you have certainly not planned to do so, although I believe you’ve got managed to convey your state of mind that many everyone is with. Your feeling regarding needing to guide, but not knowing how as well as where, is usually some thing many of us intend as a result of.

By: y2kurtus Fri, 17 May 2013 02:25:09 +0000 @ Felix,

Come on man, you’re way to good a policy wonk to use the CBO forecasts unmodified. Please correct me if I’m mistaken but the baseline budget forecast assumes that:

the annual medicare fix doesn’t happen next year (as it does every year) I think that’s almost a 300B 10 year delta by itself at this point.

I think the CBO projections also assume that we’re going to drop back to only 36 weeks of unemployment insurance next year… dubious to the tune of 10 – 20 billion annually.

Also I think the earned income tax credit sunsets in 5 years which pad the back half of the forecast.

Plus we are assuming that accelerated depreciation on capital investment (which we have patched every year since 2008) ends next year.. I think that’s like 25 billion annually.

The unavoidable issue is that the standard of living for the working class in 1st world nations must continue to fall if we are wedded to the idea of a 15 year average government funded retirement. As the ratio of workers to non-workers continues to worsen taxes on workers must rise and benefits to non-workers must fall. The math is the math.

By: TFF Thu, 16 May 2013 12:50:51 +0000 The greater problem, Felix, is that everything to the right of that dashed line is pure fiction. Cut your graph off at reality, and you see that the debt has doubled relative to GDP over a handful of years.

I don’t know what reality will bring. Perhaps the CBO is getting it right this time? But what happens if we instead hit another recession in the next ten years, again slashing revenues while driving up spending? Before you know it, we’ll be at 120% of GDP, with the spendthrifts arguing that the only way out is to push government spending even higher.

Fact is, we’ve already seen moderate austerity measures AND IT HASN’T DAMPENED THE RECOVERY AT ALL! There are more positive signs over the recent months than there were in the previous two years combined. I’ll trust empirical evidence ahead of theory in this.

By: KenG_CA Wed, 15 May 2013 19:05:54 +0000 The US debt will become a problem when other large economies, like the EU, the UK, and Japan, solve their debt problems. Which isn’t going to happen anytime soon.

We could end federal deficits if those with cash decided to use more of it here. People don’t like the government having to pay unemployment benefits, but the amount the government spends on unemployment is inversely proportional to how many people are employed. If business “leaders” are so upset about the government spending on social programs, they could cause the spending to be reduced by hiring more people and paying for things like health care and child care. Then the government wouldn’t have to do it.