In an ideal world, GOPers would hold firm and not pass any debt limit until Democrats agreed to enact something like the Ryan plan/Cut-Cap-Balance. But I’ve never thought that was a realistic strategy. When we got to the drop-dead point, Obama would have Geithner or Bernanke give an inflammatory speech designed to panic financial markets […]

I testified before the House Ways & Means Committee earlier today. As always, my trip inside the belly of the beast was an interesting adventure. The tax-writing committee was holding a hearing on the value-added tax. I was on a panel with five other witnesses, and all of the other people testifying were sympathetic to […]

There are rumors that Obama may do a bit Clinton-era triangulation and agree to a GOP-friendly increase in the debt limit. That means no tax increases and as much as $3 trillion of so-called spending cuts. I’m skeptical, and even if it happens, I suspect that most of the spending cuts will be ephemeral (like […]

Susan Feiner, in a recent blog post for Ms Magazine, argues that continuing deficits favor the feminist movement. The post is entitled “A Feminist Economist Speaks Out: Deficits are a Grrrl’s Best Friend”. Normally I wouldn’t give any time to addressing the arguments of someone who not only refers to her opposition as “hawks” but […]

llister Heath is one of the best economic columnists in Europe and his analysis of Europe’s fiscal situation is rather grim. But Americans can’t be smug. This is where the Bush-Obama policies, combined with demographics, are leading America. Here’s Allister’s analysis of where things stand in Europe. Gold hit £1,000 an ounce today for the […]

The on-again, off-again “Gang of Six” has come back on the scene and is offering a “Bipartisan Plan to Reduce Our Nation’s Deficits.” The proposal is quite similar to the one put forth by the President’s Simpson-Bowles Commission, which isn’t too surprising since some of the same people are involved. At this stage, all I’ve […]

Here’s a new video from the Cato Institute, featuring my pearls of wisdom, along with equally sage commentary from my colleague Chris Edwards. We make two simple points. First, America faces a Greek-style fiscal crisis if we leave the federal budget on autopilot (actually, it will be worse since we won’t get a bailout from […]

At his press conference today, President Obama repeatedly said that a “balanced approach” is needed to deal with the fiscal situation. The White House has obviously poll-tested and focus-grouped that phrase. But just because it’s gimmicky, that doesn’t mean balance is a bad idea. So I’ve decided to take the President’s challenge. I want to […]