Paul Krugman: Brewing Up ConfusionQuicklink submitted by Sheila Samples Permalink
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|It's true that we face a time-sensitive issue in the form of the fiscal cliff: unless a deal is reached, we will soon experience a combination of tax increases and spending cuts that might push the nation back into recession. But that prospect doesn't reflect a failure to 'fix the debt' by reducing the budget deficit -- on the contrary, the danger is that we'll cut the deficit too fast. President Obama has made huge concessions. He has already cut spending sharply, and has now offered additional big spending cuts, including a cut in Social Security benefits, while signaling his willingness to retain many of the Bush tax cuts, even for people with very high incomes. Taken as a whole, the president's proposals are arguably to the right of those made by Erskine Bowles and Alan Simpson, the co-chairmen of his deficit commission, in 2010.|
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