Congress has been developing a stimulus plan in recent weeks which it hopes will provide a much needed boost to the ailing economy. There has been a tendency to pin those supporting a large stimulus plan against those individuals deemed to be “deficits hawks.”
There are two points to make about this discussion. First, such a characterization assumes there are currently “deficit hawks” who are standing in the way of economic stimulus because of their concern for the short-term deficit--an assumption I consider dubious and at the very least is not an accurate description that people could make of The Concord Coalition based on our recent media interviews or policy briefs.
The second point is that setting up positions in this “debate” implies that short-term stimulus and long-term fiscal responsibility are contradictory goals. They are not, and we have attempted to make that clear.
In our most recent issue brief, we highlighted the important roles of short-term stimulus aimed at increasing aggregate demand in the interim and budgeting rules (like PAYGO) aimed at improving our longer-term future. These two problems should not be treated the same:...