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As the finance minister Shri Palaniappan Chidambaram struggles to contain the fiscal deficit, questions are being raised about whether an expensive programme of subsidised food distribution is affordable, and a sensible use of public funds.
If economists like Baker, and Nobel Prize-winning economics professor Paul Krugman had their way, Obama might have answered the deficit questions more like this: "Let's not worry about the deficit for now.
Without getting into the national deficit questions, it is worth thinking about how tricky the process of individual savings can be and how widely results can vary, even with the best of intentions.
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Not all countries leave every debt and deficit question to politicians: Sweden and Hungary use fiscal policy councils, while Israel and Chile use fiscal rules that cap growth in government spending.
Yesterday, Krugman responded to my recent op-ed by digging in deeper on the deficit question.
"Addressing the Social Security issue as part of the deficit question is like attacking Iraq to retaliate for the September 11 attacks," said Schakowsky.
Well, until they propose a budget of their own -- complete with numbers this time, guys -- then every time the deficit question is asked, Democrats should use some version of the following in response.
JAMES HAMILTON has written a good post on the issue of the American government deficit:[T]he question before us is, what will the situation be another two years down the road, when the government will need to go back to bond markets to roll over the debt it issued on Monday along with new debt to cover the several trillion added to the federal debt between now and then?
True, the creation of the euro was preceded by low national inflation rates and low budget deficits (although questions are now being asked about how the Euroland governments manipulated the numbers).
He agreed that they had to deal with the deficit, but questioned how to do so without hurting people.
However, the selectivity of the deficit is questioned by recent reports on deficits in the processing of biological motion [22] and decreases in the subjective vividness of visual mental imagery [23].
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Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com