Posted on Thursday, February 17, 2011
AMERICA is missing the chance in 2011—with firmer growth and no election pending—to move proactively toward a credible, multi-year plan for deficit reduction along the lines suggested by the President’s Fiscal Commission report last December. The President’s own 2012 budget abuses baseline methodology to create illusory cuts. Unfortunately, a fiscal crisis—signalled by sharply higher borrowing costs for the United States government—probably won’t emerge during this year's discussion of 2012 and future budgets.
John Makin, THE ECONOMIST