海角大神

I found this very nice聽video of Simon Johnson explaining to CNN-Money鈥檚 Lex Harris why taxes will have to come up for everyone鈥搉ot just the rich. (Simon鈥檚 video was embedded in an also-nice CNN-Money column by Joe Thorndike on the topic of 鈥渇airness鈥� and taxing the rich.) Simon explains the basic math that I have emphasized over and over again here: (i) the fiscal gap is just too large to put just on the backs of (even) the rich; and (ii) yes, taxes will have to be part of the solution (no matter what you think about their role in creating the 鈥減roblem鈥�), because the spending paths are not something we could or would choose to flat-line, even as we try our best to damp them down. (BTW, I鈥檓 now reading Simon鈥檚 new book on the national debt, White House Burning (with James Kwak), which is excellent鈥損articularly in putting the current problem in historical context and making common-sense recommendations that emphasize that 鈥渇iscal sustainability鈥� depends on the paths of both the numerator of the debt and the denominator of the size of the economy.)

And what of the fact that the 鈥淛ust Raise Taxes鈥� solution is not yet gaining enough traction? Matt Miller explains the consequences in his Washington Post column:

The solution for the young people?聽 Matt (with the help of Alan Simpson) explains you gotta fight fire with fire (emphasis added):

All this talk about what鈥檚 鈥渇air鈥� to burden the rich with, and so little mention of our kids.聽 That鈥檚 what鈥檚 really outrageous about the partisan bickering about deficit reduction, spending cuts, and tax increases:聽 the politicians like to claim they are all about doing what鈥檚 right for our kids and grandkids鈥揵ut when you pay close attention, you see their specific actions don鈥檛 match up with their vague words.聽 I think the kids have to get more involved.聽 The so-called 鈥済rownups鈥� aren鈥檛 getting it done.