NYT: You Fix the Budget

Over at the New York Times, David Leonhardt, Bill Marsh, Shan Carter, Matthew Ericson, and Kevin Quealy have prepared a great online tool for analyzing federal budget options.

Your charge, if you choose to accept it, is to assemble a combination of spending cuts and tax increases that will adequately reduce the budget deficit balance the budget in 2030. To do so, you will need to find $1.355 trillion in budget adjustments.

I particularly like their decision to list cutting foreign aid in half ($17 billion) and eliminating earmarks ($14 billion) as the first two items. These are popular options in many circles, but they are small potatoes when it comes to the overall budget. Choose both options and you still have $1.324 billion to go.

Good luck.

* As Vivian Darkbloom notes in the first comment, I originally misread the goal for this exercise. The graphic refers to closing the budget gap, which I mistook as budget balance. David Leonhardt’s accompanying blog post makes clear that the goal is essentially getting down to a sustainable deficit level, which is an easier target.

About Donald Marron 294 Articles

Donald Marron is an economist in the Washington, DC area. He currently speaks, writes, and consults about economic, budget, and financial issues.

From 2002 to early 2009, he served in various senior positions in the White House and Congress including: * Member of the President’s Council of Economic Advisers (CEA) * Acting Director of the Congressional Budget Office (CBO) * Executive Director of Congress’s Joint Economic Committee (JEC)

Before his government service, Donald had a varied career as a professor, consultant, and entrepreneur. In the mid-1990s, he taught economics and finance at the University of Chicago Graduate School of Business. He then spent about a year-and-a-half managing large antitrust cases (e.g., Pepsi vs. Coke) at Charles River Associates in Washington, DC. After that, he took the plunge into the world of new ventures, serving as Chief Financial Officer of a health care software start-up in Austin, TX. After that fascinating experience, he started his career in public service.

Donald received his Ph.D. in Economics from the Massachusetts Institute of Technology and his B.A. in Mathematics a couple miles down the road at Harvard.

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