The Great Debate

Why are we making Uncle Sam a trillion-dollar lender?

By Douglas Holtz-Eakin
July 28, 2011

By Douglas Holtz-Eakin
The opinions expressed are his own.

America is on a path to fiscal disaster.  The skyrocketing national debt will continue to force the Nation to make fundamental decisions about what the government will and will not do, and how to share budget resources across competing programs.  Too bad Congressional budget rules give misleading signals on the best path forward.

Should Obama mimic David Cameron’s austerity?

By Nicholas Wapshott
July 27, 2011

By Nicholas Wapshott
The opinions expressed are his own.

In medieval times, a key member of a monarch’s retinue was the food taster, a hapless fellow who ate what his master was about to eat. If the taster survived, the food was deemed safe for the king’s consumption. President Obama has a taster of sorts in David Cameron, the British prime minister, who has embarked upon an economic experiment that echoes the recipe of wholesale public spending cuts and tax hikes needed if both sides in Congress are to agree to raising the federal government debt ceiling. How the British economy is faring offers Obama an idea of what a similarly radical policy of cutting and taxing here would mean to the American economy.

from Reuters Money:

Budget wars: The middle class loses big time

April 8, 2011

President Barack Obama talks about the budget in the White House press briefing room in Washington, April 5, 2011.   REUTERS/Larry Downing Now that federal government shutdown has been averted, it's a good time to examine what's at stake for most of America in the crucial next round of budget talks.

from Reuters Money:

Deficit cutting need not be cruel

December 2, 2010

SPAIN-ECONOMY/Congress needn't be cruel to be kind in cutting the U.S. budget deficit while saving popular programs like Social Security and Medicare.

from The Great Debate UK:

Banks, borrowing, bonds and Britain’s budget

June 21, 2010

BRITAIN/

-Laurence Copeland is a professor of finance at Cardiff University Business School and a co-author of “Verdict on the Crash” published by the Institute of Economic Affairs. The opinions expressed are his own. Join Reuters for a live discussion with guests as UK Chancellor George Osborne makes  an emergency budget statement at 12:30 p.m. British time on Tuesday, June 22, 2010.-

from The Great Debate UK:

A year of austerity looms in 2010

December 23, 2009

david-kuo_motley-foolthumbnail-David Kuo is director at the Motley Fool. The opinions expressed are his own.-

If you thought 2009 was as bad as things will get, then think again: 2010 could be worse. It is likely to be a year of enforced austerity with both the government and households making obligatory cuts to their budgets.

Get ready for the IOU market

July 2, 2009

agnes1– Agnes T. Crane is a Reuters columnist. The views expressed are her own –

Let the trading begin.

California will be mailing out its first batch of IOUs today after the state’s stalemate over how to close the more than $24 billion hole in the budget leaves it with insufficient funds.

from Commentaries:

California faces its moment of truth

June 29, 2009

agnes1The California budget impasse comes to a head one way or the other this week, with state lawmakers needing to make nice by June 30 to close a $24 billion budget gap. If they don't, rating agencies have threatened to downgrade the state's credit ratings.

from The Great Debate UK:

Darling gambles with Britain’s credit

April 23, 2009

REUTERS-- Neil Collins is a Reuters columnist. Christopher Fildes is a guest columnist. The opinions expressed are their own --

Trillion-dollar deficits are not the answer

March 26, 2009

– Diana Furchtgott-Roth, former chief economist at the U.S. Department of Labor, is a senior fellow at the Hudson Institute. —