ORSZAG: Well, I guess, well, the way I would put it is we face these two dramatic challenges, the hard slog on very sluggish economic growth and elevated unemployment. And then on the other hand, this very significant medium and long-term fiscal problem. And I think the tradeoffs are even worse than the official projections because I think growth is likely to be slower than the official projection.
ORSZAG: And getting that glidepath, as I haven’t seen those royalty checks showing up but I’m waiting for them. Getting that…
KEENE: Rex, take a note. Get the check in the mail for Orszag.
ORSZAG: …glidepath, so more support for the jobs market and for the economy right now…
ORSZAG: …and then a lot more deficit reduction that’s enacted now to take effect in 2014, 2015, 2016. That’s what we need to do.
–Peter Orszag, Citigroup, Surveillance Midday, 26 July 2011
Our irresponsibility is our gift to our children and grandchildren.
The former head of the Congressional Budget Office can talk of “deficit reduction” but the distinction is, will it be increased taxes or reduced spending?
That is our fiscal politics.
I urge all breathing to consider the CBO’s spirited and clear summary of the GOP Ryan Plan.
Its set of “glidepaths” is to a tax-take reminiscent of now, or at least 2006. (It assumes a growthiness that Dr. Orszag does not perceive. I am in search of the Ryanian calculation of fiscal drag.)
The Ryan Plan (PowerPoint?) has a spending glidepath that migrates towards the 1956 of Elvis and Ike.
Keep politics out of this. Consider 38 years forward (can I do Surveillance at 97?) of exogenous and endogenous shocks to the good Congressman’s prosperous model.
The check is in the mail. Discuss.