Democrat economic strategy in a can
Posted by Professor Mockumental
From a man who has and continues to serve the nation so well, one of the revolving-door finance types of the Administration, Peter Orszag (I think he was the President’s Fail Czar and is now at Citi), comes Democrat/liberal economic strategy in a can:
When policy makers put in place measures carefully designed to reduce the federal deficit in the future, most of them happen. This is a good thing, since enacting more stimulus today and more deficit reduction to take effect later is exactly what the U.S. needs.
Orszag’s very limited, very specific assertion is that raising the Social Security age from 66 to 67, phased over five years and starting in 2017, the carefully designed measure being referenced, will work anywhere.
According to this logic, although the federal government holds unfathomable debt and future liabilities, all we need for economic success are more carefully designed measures, like delaying repayment (per the Social Security example), adding more stimulus today, and holding off on any reductions until the metaphoric tomorrow. And because this additional deficit spending will fix the economy—your actual Obamanomoics results may vary—all will be well.
Insert your face-palm here.
For example, Orszag fails to address reducing the nearly $16 trillion federal debt, over $130K for each man, woman, and child in America, the perhaps $100 trillion in off-budget entitlement liabilities like Social Security, or the interest payments—already at record low rates—which still manage to eat up 20% of all federal receipts.
It’s almost like it is assumed these obligations won’t be paid off, or if they are, will be repaid with fewer dollars or dollars that have a greatly reduced buying power.
Peter Orszag does the impossible: he makes Joe Biden look reasonable.