August 22, 2014

Posts on federal budget

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Monday, October 20, 2008 - 6:01 PM

Our Executive Director, Bob Bixby, recently participated in an online discussion on the "National Journal's Expert Blogs" focused on whether there is room for fiscal stimulus in the budget, given the extraordinary change in the fiscal position of the government due to the economic downturn and the government's already unprecedented response. Here is his post:

"Yes, there is room for fiscal stimulus -- so long as it sticks to the principles of being timely, targeted and temporary. What we don’t have room for are permanent new policies, either on the spending or tax side, that aren’t paid for. While the very real threat of a serious and lengthy recession justifies deficit-financed stimulus in the near-term, we need to keep in mind that our underlying fiscal policy is already on an unsustainable track. Treating the short-term problem should do as little harm as possible to the long-term outlook. Economically speaking, we need to walk and chew gum at the same time.

The goal of additional fiscal stimulus is to boost consumption and avoid a deep recession. Since...