Brain
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Joined: 2/14/2007
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Finally, there is someone in the private sector with intelligence about economics and courage to speak out on the dysfunctional behavior in Washington. Unfortunately, it probably isn't going to make any difference in the American economy. Maybe it should read get back to sanity.
Sadly this is all about cutting spending to increase unemployment so Obama will be a one term president. Republicans are power hungry and despicable.
PIMCO Founder To Deficit-Obsessed Congress: Get Back To Reality | TPMDC
"Solutions from policymakers on the right or left, however, seem focused almost exclusively on rectifying or reducing our budget deficit as a panacea," Gross writes. "While Democrats favor tax increases and mild adjustments to entitlements, Republicans pound the table for trillions of dollars of spending cuts and an axing of Obamacare. Both, however, somewhat mystifyingly, believe that balancing the budget will magically produce 20 million jobs over the next 10 years. President Obama's long-term budget makes just such a claim and Republican alternatives go many steps further. Former Governor Pawlenty of Minnesota might be the Republicans' extreme example, but his claim of 5% real growth based on tax cuts and entitlement reductions comes out of left field or perhaps the field of dreams. The United States has not had a sustained period of 5% real growth for nearly 60 years."
Emphasis added. Gross recommends a swift, deficit-financed investment in infrastructure. "[G]overnment must take a leading role in job creation," Gross said. "Conservative or even liberal agendas that cede responsibility for job creation to the private sector over the next few years are simply dazed or perhaps crazed.... In the near term, then, we should not rely solely on job or corporate-directed payroll tax credits because corporations may not take enough of that bait, and they're sitting pretty as it is. Government must step up to the plate, as it should have in early 2009. An infrastructure bank to fund badly needed reconstruction projects is a commonly accepted idea, despite the limitations of the original "shovel-ready" stimulus program in 2009."
Unfortunately for Gross and those who share his concerns, the fight over the debt limit seems driven by Republicans hungry for long-standing ideological victories and Democrats cowed into an anti-stimulus fervor whipped up by the right. To many observers it appears that fixing the currently broken economy isn't really what this is about.
http://tpmdc.talkingpointsmemo.com/2011/06/pimco-founder-to-deficit-obsessed-congress-get-back-to-reality.php
Bill Gross
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