News
CNN Money | Debt ceiling in play again
Washington is spoiling for a fight over the country's debt ceiling -- less than a year after a showdown that induced a credit downgrade, rocked the markets and eroded confidence in Congress.
Econ Comments & Analysis
WSJ | The Long and Short of Fiscal Policy
Can we talk about the federal budget deficit? Better yet, can we think about it? For there has been a lot more talking than thinking. One persistent point of confusion arises from the radically different macroeconomic effects of larger budget deficits in the short and long runs.
Independent Institute | The Golden State Gone Broke
California Governor Jerry Brown proposes a $91 billion budget with dramatic cuts to medical, child welfare, disabilities benefits, and the court system. He also wants higher sales taxes and income taxes on the wealthy to reduce $8.5 billion from the $16 billion deficit. If this tax measure fails, Brown’s plan automatically cuts $5.5 billion from public schools.
Blogs
Tax Foundation | Hiding it Does Not Help: Social Security is Already Broke
"Nonetheless, additional general revenue financing of Social Security in absence of broader reform tends to hide the true deficits in Social Security, deter reform, and likely increase total government deficits in the long-term."
National Review | More Spending Won’t Save Europe
Even if Germany manages to increase domestic demand, there is no guarantee that the additional spending will find its way into the peripheral euro-zone economies. A simple macroeconomic simulation suggests that a permanent increase in German government consumption equivalent to one percentage point of GDP would raise output in Ireland and Greece by 0.1% at most
