My pal Charlie Gasparino questions whether the GOP is making a huge mistake by focusing so intently on cutting deficits and spending:
Mary Meeker, the famed technology stock analyst now at venture firm Kleiner Perkins, has produced a ginormous report/PowerPoint presentation that looks at the United States as if it were a corporation. Now there’s little factually in the report that couldn’t be found by perusing the Congressional Budget Office website or the recent report put out by President Barack Obama’s debt commission. And I think her menu of policy recommendations isn’t particularly novel either. I wish, for instance, she had looked at Rep. Paul Ryan’s plan to reform healthcare:
I’m a big fan of Michelle Caruso-Cabrera’s analysis and insight on CNBC, so I was delighted to hear she was writing a book. And “You Know I’m Right: More Prosperity, Less Government” doesn’t disappoint. It’s a straightforward, highly readable argument in favor of fiscal conservatism and limited government. Like me, she spent her childhood in the 1970s and 1980s and experienced firsthand the impact of economic policy gone awry and economic policy done right. During Ronald Reagan’s presidency, she writes:
So how goes the economic news today? The job market?
The jobless claims data remain the weakest indicator of labor market activity. On the face of it, the rise in the four-week average to the highest level since the beginning of March points to a weakening in the labor market and a potential decline in private payrolls. … we find the level and direction in jobless claims somewhat troubling and the increase is likely to feed double-dip fears. (RDQ Economics)
Lucky this baby didn’t land during the G20 meeting! America’s fiscal judge, the Congressional Budget Office, has produced another nightmare report. The bad news: U.S. debt-to-GDP will hit 858 percent by 2080, roughly ten times today’s level. The “good” news: The economy would implode long before. But avoiding that fate requires just the right balance now between austerity and a push for real, private-sector led economic growth.
The U.S. is pushing its G20 counterparts to focus more on growth than deficits right now. Too bad America — or at least Congress — seems to be doing neither. Not only is Uncle Sam on pace to rack up another $10 trillion (at least) in debt over the next decade, but little is being down to boost growth and jobs. The latest: Democrats are now openly talking about extending the middle-class Bush tax for only a couple of years until, you know, when the economy is booming. Of course, we may still have unemployment at 8 percent then. I could see letting the Bush tax cuts expire and then replacing them with a more pro-growth tax policy. But a $3 trillion tax hike? Nothing pro-growth about that.