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View Diary: EPI analysis: Simpson-Bowles proposal would cost 4 million jobs (180 comments)

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  •  Bernanke said the biggest risk, not the deficit (1+ / 0-)
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    wsexson

    its unemployment and called for large scale job stim. Wanna cut spending like in 1936, and create a recession like 1937?

    FDR 9-23-33, "If we cannot do this one way, we will do it another way. But do it we will.

    by Roger Fox on Fri Nov 26, 2010 at 03:40:14 PM PST

    [ Parent ]

    •  Full-employment deficit. (1+ / 0-)
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      Roger Fox

      The deficit has two components, the "full-employment deficit," which is what the deficit would be if unemployment were at some particular level (usually 3% or 4%)
      AND
      the extra deficit because the government is getting less revenue and spending more due to the recession.

      The chairmen of the catfood commission are proposing to cut the full-employment deficit, which -- really -- isn't all that bad. Their proposal would increase the second component.

      It's like the company whose sales weren't meeting expectations. So, they cut their advertising budget to save money.

      Corporations are people; money is speech.
      1984 - George Orwell

      by Frank Palmer on Sat Nov 27, 2010 at 09:49:41 AM PST

      [ Parent ]

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