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Labs of Democracy & Today's Fiscal Policy Debates The New York Times Economix, February 28 , 2013
FISCAL policy debates often focus on technocratic questions about how much money the government should spend and when, yet the actual course of events depends not on the experts but on politics.
Robert E. Hall, a Stanford economist who is chairman of the committee that determines the start and end dates of recessions, said it would be "very wise" for Mr. Bernanke to keep out of the fiscal policy debates.
While educating the next generation is seldom included in long-term fiscal policy debates, our children and grandchildren are constantly evoked as reasons to slash and cap spending now.
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Grant the output gap interpretation, and the fiscal policy debate evaporates.
So invoking cases like these as if they have something to do with the fiscal policy debate is either ignorant, disingenuous, or both.
Mr. Bernanke's speech argued that unemployment in the United States is at "unacceptable" levels, and gingerly waded into the fiscal policy debate roiling Washington.
Joe Weisenthal says that the coin debate is the most important fiscal policy debate of our lifetimes; I agree, with two slight quibbles — it's arguably more of a monetary than a fiscal debate, and it's really part of the broader debate that has been going on ever since we entered the liquidity trap.
Progressives are patting themselves on the back for shifting the terms of a fiscal policy debate that has allegedly been unduly tilted in favor of deficit "hawks". Indeed, even President Obama has, in the past, favored trims to Social Security — in the form of a slower cost-of-living increase, not actual cuts — if they were part of a comprehensive deal on the long-term deficit.
Beyond offering a misleading snapshot of public opinion, the Fiscal Confidence Index illustrates a deeper problem with the fiscal policy debate.
The client-pleasing hack job here is another example of the negative influence of Pete Peterson's huge fortune in the fiscal policy debate -- money sprinkled around so generously that it can tempt even smart people to say stupid things.
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Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com