Does no jobs mean no deficit reduction?
Nope. Simplest reason why not: the deficit reduction we鈥檙e talking about is over the next ten years. The extra or at least more effective stimulus we鈥檙e talking about better come sooner.
Many of the same policies that contribute to the adverse longer-term fiscal outlook provide very little offsetting benefit to the near term. Getting our longer-term act together would give global investors, right now, more confidence in the security of Treasury bonds and help keep the cost of borrowing鈥揻or stimulus right now鈥搇ow. So it seems the so-called 鈥渟uper committee鈥� has no reason to shy away from its task of (another $1.5 trillion over ten years in) deficit reduction. There鈥檚 lots of opportunity for them to become 鈥渟uperheroes鈥� in conquering both the near-term and the longer-term challenges facing our economy. And President Obama could encourage them by offering his own leadership on this issue鈥揳nd let鈥檚 hope we hear some of that on Thursday. As 鈥渟uper鈥� as they might be or might become, they can鈥檛 do it without his help.
