A Way Out Of the Budget Impasse

By Jul 13, 2011, 12:44 PM Author's Blog  

In a column posted today on Bloomberg Views I suggested a way to resolve the budget impasse. It starts with the fact that about $6 trillion in deficit reduction is needed over 10 years to get to balanced budget.The proposal is that the President and the Congress agree now to $2.5 trillion spending growth reductions and increase the debt limit by the same amount. The question about how to close the remaining $3.5 trillion gap–tax increases or more spending reductions–is then left to debate next year as part of the 2012 election.

This chart–which I have used before–shows the feasibility of the idea. In a speech on April 13 President Obama already suggested about $2 trillion in spending growth reductions. So we are almost there.

A Way Out Of the Budget Impasse

  • SHARE:
  • Share on StockTwits

One Comment

  1. blue magic says:

    obama doesn’t realize that any dept. ceiling increase regardless how large will be short term. america is burnin through so much cash so fast that u can’t really can’t print or borrow it fast enough.treasury will burn through 2-3 trillion in a year maybe two

LEAVE A COMMENT

SPY192.50  chart-0.59  chart -0.31%
GOOG566.07  chart-5.53  chart -0.97%
AAPL96.13  chart+0.53  chart +0.55%
TSLA233.27  chart+9.97  chart +4.46%
BBRY9.30  chart-0.03  chart -0.32%
NFLX425.40  chart+2.68  chart +0.63%
FB72.36  chart-0.29  chart -0.40%

Nikkei15523.11  chart-97.659  chart -0.63%
Shanghai0.00  chartN/A  chartN/A
UK6679.18  chart-50.93  chart -0.76%
France4202.78  chart-43.36  chart -1.02%
Germany9210.08  chart-197.40  chart -2.10%