Posted by WARREN MOSLER on February 23rd, 2009
I was hoping not to be reading this:
by Ross Colvin
Feb 22 (Reuters) — Obama wants to slash the ballooning deficit in half by 2013, U.S. officials said Saturday, after massively increasing public spending to stem the worst economic crisis in decades.
The president will outline his ambitious goal when he hosts a summit at the White House Monday on fiscal responsibility and later in the week when his administration presents a summary of its first budget, for the 2010 fiscal year.
“We can’t generate sustained growth without getting our deficits under control,” Obama said in his weekly radio address in which he also announced immediate implementation of tax cuts for 95 percent of Americans as part of the effort to stimulate the economy.
And he may succeed by letting the top tax rates rise in 2010. This would raise taxes for people with relatively low propensities to consume, until the strong economy again drives the budget into surplus and thereby causes the next crash.
If he first allows the budget deficit to get large enough to add the savings that will support the subsequent Obamaboom that brings the deficit down.