海角大神

鈥淥ur biggest problems over the next ten years are not deficits,鈥� the President told House Republicans Wednesday,聽聽the meeting.

The President needs to deliver the same message to the public, loudly and clearly. The biggest problems we face are unemployment, stagnant wages, slow growth, and widening inequality 鈥� not deficits. The major goal must be to get jobs and wages back, not balance the budget.听

Paul Ryan鈥檚 budget plan 鈥� essentially, the House Republican plan 鈥� is designed to lure the White House and Democrats, and the American public, into a debate over how to balance the federal budget in ten years, not over whether it鈥檚 worth doing.

鈥淭his is an invitation,鈥� Ryan explained when he unveiled the plan Tuesday. 鈥淪how us how to balance the budget. If you don鈥檛 like the way we鈥檙e proposing to balance our budget, how do you propose to balance the budget?鈥� 聽

Until now the President has seemed all too willing to engage in that debate. His ongoing talk of a 鈥済rand bargain鈥� to reduce the budget deficit has played directly into Republican hands.听

As has his repeated use of the Republican analogy comparing the government鈥檚 finances to a household鈥檚. 鈥淛ust as families and businesses must tighten their belts to live within their means,鈥� he said of his 2013 budget, 鈥渟o must the Federal Government.鈥�

Hopefully, he鈥檚 now shifting the debate.听

The government鈥檚 finances are not at all like a household鈥檚. In fact, it鈥檚 when American families can鈥檛 spend enough to keep the economy going, because too many of them are unemployed or underemployed and have run out of money, that government has to step in as spender of last resort 鈥� even if that means taking on more debt. If聽government doesn鈥檛 fill the spending gap, an economy can collapse into deeper recession or depression, pushing unemployment far higher. Look at what austerity economics has done to Europe.听

In addition, it鈥檚 perfectly fine for government to borrow and continue to borrow in order to invest in new roads or other infrastructure, or education, or basic research 鈥� when those investments pay off in higher rates of economic growth.The notion that government spending 鈥渃rowds out鈥� private investment, keeping interest rates higher than otherwise, is obsolete in a global economy where capital sloshes across national borders, seeking the highest returns from anywhere.听Societies that invest in the productivity of their people attract global capital and create high-paying jobs. And since most big corporations are no longer dependent on the productivity of any one nation, the responsibility for making such 聽investments increasingly falls to government.Not that we should disregard the debt altogether, but the best way to deal with it is to do so gradually, through economic growth. That鈥檚 how we reduced the giant debt Franklin D. Roosevelt bequeathed America, and it鈥檚 how the Clinton Administration (of which I am proud to have been a member) achieved a balanced budget in 1996.听Republicans want Americans to believe government budgets are like family budgets that must be balanced because the analogy helps their ideological aim to 鈥渄rown the government in a bathtub,鈥� in the memorable words of their guru, Grover Norquist. As long as there鈥檚 a debt and balance is the goal, shrinkage is the only option 鈥� if tax increases are ruled out.听

At last the President wants to change the debate and focus on the real economic problem. In a聽Tuesday interview with George Stephanopoulos that got less attention than it deserved, he said 鈥渕y goal is not to chase a balanced budget just for the sake of balance. My goal is how do we grow the economy, put people back to work, and if we do that we are going to be bringing in more revenue.鈥�

Let the real contest begin. 聽