Does no jobs mean no deficit reduction?(Read article summary)
The poor jobs report means effective stimulus should come sooner rather than later
Nope. Simplest reason why not: the deficit reduction weâ€™re talking about is over the next ten years. The extra or at least more effective stimulus weâ€™re talking about better come sooner.
Many of the same policies that contribute to the adverse longer-term fiscal outlook provide very little offsetting benefit to the near term. Getting our longer-term act together would give global investors, right now, more confidence in the security of Treasury bonds and help keep the cost of borrowingâ€“for stimulus right nowâ€“low. So it seems the so-called â€śsuper committeeâ€ť has no reason to shy away from its task of (another $1.5 trillion over ten years in) deficit reduction. Thereâ€™s lots of opportunity for them to become â€śsuperheroesâ€ť in conquering both the near-term and the longer-term challenges facing our economy. And President Obama could encourage them by offering his own leadership on this issueâ€“and letâ€™s hope we hear some of that on Thursday. As â€śsuperâ€ť as they might be or might become, they canâ€™t do it without his help.