The Right Coast

Editor: Thomas A. Smith
University of San Diego
School of Law

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Monday, February 11, 2013

A Misleading Financial Outlook | e21 - Economic Policies for the 21st Century

In Saturday’s weekly radio address, President Obama repeated the assertion that the federal government is “more than halfway” to the required cumulative deficit reduction to stabilize debt ratios. He then proceeded to argue that the policies undertaken to achieve this objective should be partially undone and replaced with a “balanced approach” – a vacuous rhetorical concept often used in place of “tax increases.” The notion that the federal government is “more than halfway” to fiscal stability is complete nonsense that can only be justified by defining the problem as narrowly as possible and relying on excessively optimistic forecasts for growth and interest rates.


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