My simple federal fiscal policy formula:

  1. Accept that these severe short-term federal deficits are an unavoidable consequence of many decades of spending growth, several decades of tax cutting, and the severe recession. It is unwise to sharply rein in these deficits until the economy is stably back on its feet. I define that as when job creation reaches the level needed to start making serious inroads into the unemployment rate — i.e., private sector job creation in the 250,000 per month range.
  2. Courageously attack long term deficits by starting to raise the Social Security/Medicare retirement age (but not for near-term retirees) and by tightening means-testing for Medicaid so that it is restored to its original purpose: a safety net for the indigent, not a middle class entitlement.
  3. In between, restore fiscal sanity by a formula of $2 of spending cuts matched to every $1 of tax increases. Real math, not Washington math.

Is that so hard? Apparently so, because I have not heard a single congressional candidate in this election cycle — not Republicans, not Democrats, not Tea Party folks, not libertarians — not one who espouses anything resembling a coherent fiscal message. This would be the time to do it, too, because for the first time in memory, the electorate seems to be ready to hear that entitlements need to be reformed. I don’t know about tax increases though. Most people still seem in denial about that stone-cold reality.

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