The Bottom Line

September 19, 2011
A Little Inflation Can be a Dangerous Thing

In today's New York Times, CRFB board member and former chairman of the Federal Reserve Paul Volcker has an op-ed on the dangers of inflation.

September 19, 2011

With the release of President Obama's deficit reduction plan this morning, CRFB has put out a press release commenting on the proposal.

September 16, 2011

With President Obama's deficit reduction plan set to be released on Monday, we already have some idea of what will be in it: reductions in tax expenditures for wealthy individuals and corporations, changes to health programs, and other mandatory savings. We also now know what won't be included in the plan: Social Security reform.

September 16, 2011

The parade of submissions to the Super Committee has started. Over the next few months the Super Committee is likely to be inundated by fiscal plans from all over--and outside--Washington, building on the long-list of 30+ existing fiscal plans already on the table. The first two came in from Sen.

September 15, 2011

Update: The Gang of 36 has grown to 45 --23 Republicans, 21 Democrats, and 1 Independent. See below for the full list of participating Senators.

September 15, 2011

Congress has a long checklist of things it has to do by the end of September. On Tuesday, it informally crossed one thing off when the House passed a "clean" extension of transportation programs through at least the end of the year. The Senate should pass it soon as well.

September 14, 2011

Today, Vice President Joe Biden convened the first cabinet-level meeting as part of the Administration's "Campaign to Cut Waste." He also announced a new Medicaid initiative designed at saving $2 billion over five years. According to OMB Director Jack Lew:  

September 14, 2011

Today, members of the Blue Dog Coalition—a group of fiscally conservative Democrats—sent a letter to the Super Committee urging it to exceed the committee’s mandate "and cut the deficit by $4 trillion over the next 10 years.”

September 13, 2011

Yesterday, we released a letter signed by over 60 leading budget experts from various fields urging the Joint Select Committee on Deficit Reduction (“Super Committee”) to Go Big in its mission to address the nation’s deficit and debt.

September 13, 2011

UPDATE: The Super Committee hearing has begun and is streaming live on the Super Committee's website and on C-SPAN3.

September 13, 2011

Yesterday, the President offered a plan for how he would pay for his $447 billion jobs proposal. The pay-fors would come entirely from revenues, mainly from limiting itemized deductions and other tax expenditures for people earning over $200,000 ($250,000 for families) per year.

September 13, 2011
A Weekly Update on Fiscal Policy Developments and a Look Ahead

Are You Ready for Some (Political) Football? – Football season got underway this weekend with hard-hitting action and thrilling finishes. Additionally, the Super Committee kicks off its work in earnest this week. The games on Capitol Hill are no less fierce than those on the gridiron, but how it all ends is still in question. There are more twists and turns to the budget drama than there are GOP presidential debates (there was another last night). Meanwhile, policymakers are trying to play offense with the economy while defending against the growing national debt.

September 12, 2011

Following CRFB's theme of urging the Super Committee to "go big," a group of more than 60 former lawmakers, policymakers, economists and business leaders have signed a letter to the committee's co-chairs, urging them to exceed their mandate and put our country on a sustainable fiscal path.

September 12, 2011

Update: Click here to watch C-SPAN's video of the press conference.

September 9, 2011

Yesterday evening, President Obama addressed a Joint Session of Congress to propose his newest economic recovery measure -- The American Jobs Act. The President's bill would have a $447 billion ten-year cost, which the President says would be fully paid for in the proposal he will give to the Super Committee a week from Monday recommending the Committee exceed its $1.5 trillion mandate.

September 8, 2011

In case you missed it yesterday afternoon, CRFB put out its expectations for the Super Committee, urging them to Go Big! Given the severity of our debt challenge, enacting only $1.5 trillion savings over the next ten years is not enough. Compared to our Realistic Baseline, this amount would keep debt on an upward path relative to the economy, both over the medium-term and the long-term. 

September 8, 2011

As the first meeting of the Super Committee has come and gone, it is important to take a look at the policies that they could consider. CRFB's table of overlapping policies, which appears in our recent paper on what we hope to see from the Super Committee, is a great resource for looking at the sort of ideas that will get some attention in the upcoming negotiations.

September 7, 2011

Update: CRFB's newest policy paper, What We Hope to See from the Super Committee, shows CRFB Realistic projections for spending by category and revenues over the long-term. Check out the graph (posted below) and the rest of our recommendations!

In light of the Budget Control Act (BCA) that passed one month ago and updated budget and economic projections from CBO, CRFB has updated its 75-year Realistic Baseline.

September 7, 2011

Leading up to President Obama’s job speech tomorrow evening, there has been much speculation as to the measures the president will propose. The current expectations are that he will suggest a $200 - 300 billion jobs plan, including extensions of the payroll tax holiday, unemployment insurance, and certain business incentives.

September 6, 2011

Starting in just a few minutes, Business Roundtable (BRT) will host a forum on the deficit -- “Meeting the Challenges of Economic Growth and Deficit Reduction” -- wherein experts will look at the work facing the Joint Select Committee on Deficit Reduction (Super Committee). The event will feature three panels, looking at the committee’s mandate, how the committee may meet their goals and what cuts or reforms might be in play, and tax reform and economic growth.

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