News
Bloomberg | Wen: World Must Cut Deficits, Not Rely on China
Chinese Premier Wen Jiabao, facing calls to widen support for indebted European countries, signaled that developed nations should cut deficits and open markets rather than rely on China to bail out the world economy.
Fox News | Federal deficit totaled $1.23T through August
At that rate, the nonpartisan Congressional Budget Office projects the deficit will total $1.28 trillion when the budget year ends in September. That would nearly match last year's $1.29 trillion imbalance and come in below the record $1.41 trillion hit in fiscal 2009.
National Journal | Where Is Congress With Appropriations?
So far, the House has passed only six of the bills and the Senate only one.
Washington Times | Budget director cuts time for supercommittee to reduce deficit
Taxes will have to rise dramatically or entitlement programs, such as Social Security and Medicare, will have to be scaled back.
Econ Comments
Washington Post | ‘Supercommittee’? More than stupor committee.
The panel followed that triumph by holding a hearing Tuesday morning devoted in large part to trading blame for the deficit.
Market Watch | Greenspan urges quick fix for U.S. debt
Former Federal Reserve Chairman Alan Greenspan warned of “devastating” damage to financial markets unless Congress quickly begins to address the soaring national debt. He also reiterated his call for an increase in taxes.
Cato Institute | Feeling Spent
The result: Three years and $1.5 trillion of spending later, we are back to the same gallimaufry of failed ideas.
WSJ | 'Grand Bargains' Are a Budgetary Dead End
The arithmetic of debt is simple: The taxes necessary to feed these deals will stifle economic growth.
RCM | Super Committee Vs. Fiscal Commission: It's Different This Time
...a closer examination of the two bodies' purpose, structure, and powers reveals a night-and-day difference - the Super Committee is designed to succeed, while the Fiscal Commission was not.
Blogs
NRO: The Corner | More on Infrastructure Spending in the ‘American Jobs Act’
...here are some striking facts about government run public work projects. The most comprehensive study of cost overruns examines 20 nations spanning five continents.
WSJ: Real Time Economics | Supercommittee Open to Finding Extra Savings to Pay for Parts of Jobs Plan
Still, there is broad support for some of the president’s proposals, such as a measure to extend a payroll tax cut, if there is also a way to pay for it.
Reports
CBO | Confronting the Nation's Fiscal Policy Challenges
As a result, putting the federal budget on a sustainable path will require significant changes in spending policies, tax policies, or both.
