A RESPONSIBLE path to recovery and prosperity - investing in America's economy

[geckosfeet]

I have been disgusted by all the austerity talk - and fairly sickened at the cut in wages for federal workers. That wage cut does nothing but further erode the middle class and weaken the economy (and pander to republicans and hate mongers). The bulk of the money 'saved' will go to tax cuts for the wealthy and corporations and military spending. How does that help the economy?

Yesterday in a post on DU there was a link to a joint progressive think tank web site on economic policy. At the site there is a plethora of insightful, sane and pragmatic thoughts on economic policy. I thought it deserved some love given yesterdays events and the deficit spending/economic proposal reviews that will happen today.

Investing in America’s Economy

Our suggested budget blueprint achieves lower deficits in the medium term and balances the primary federal budget (the year’s current revenue and spending, not counting interest payments on past debt) in less than a decade. Tis path recognizes the need to increase revenue while targeting certain areas for reductions in spending; in particular, our proposed path reallocates spending away from the Department of Defense by adopting common sense spending reductions.

Finally, the blueprint protects core priorities such as Social Security and health care from economically counterproductive reductions in benefits. The net impact of the spending and revenue adjustments we put forth in this blueprint will produce the following short- and long-term results:

• Substantial and sustained increased funding for job creation and investments, especially in the near term


• A budget path that significantly improves the 10-year budget window


• A transition from a primary deficit to a primary surplus in 2018, and sustainable debt levels by the end of the decade


• An improvement in the path for public debt in the long term (stabilizing debt as a share of the economy beyond 2025)


• A solid footing for Social Security, Medicare, and Medicaid for the long term


• A modernized tax code that raises adequate revenue fairly and efficiently

Just as an investment-oriented federal policy helped to create a thriving middle class in the postwar period, an ideology of disinvestment has helped to erode it over the past 30 years. Another path is not only possible, but necessary. Although there are many paths to fiscal balance – some of which include drastic spending and entitlement cuts and the continuation of a regressive tax system – only a path that fosters broadly shared economic growth and security will be sustainable in the long run.

Investing in America’s Economy

As much sanity, logic and reason as you can take at the link.

This fiscal blueprint demonstrates to me that we know what to do and how to do it - we just don't have the political will or know how to enact progressive economic policy.

on edit: added link to DU post