MacGuineas and Weinstein on the Fiscal Cliff
CRFB President Maya MacGuineas joined Mark Zandi of Moody's Analytics on "Face the Nation" this Sunday discussing the Fix the Debt campaign and the fiscal cliff. MacGuineas criticized the political gimmicks from both Democrats and Republicans in the current negotiations and noted that the clear solution is very straightforward: it needs to raise revenues, cut spending, and reform entitlements.
MacGuineas argued that the country could use a "Go Big" type of plan that gradually phases in cuts to take advantage of the announcement effect. She described the boost in confidence from enacting such a plan as being the cheapest form of stimulus. But waiting until the last minute is not the way to go as that creates heightened uncertainty and anxiety for businesses and consumers who are looking to see what policy will be for next year. According to MacGuineas, "it's not about the policy, but the politics," and lawmakers should find a solution quickly.
Former Senior Adviser to the Fiscal Commission and CRFB consultant Paul Weinstein also appeared on Sunday's Washington Journal to discuss the fiscal cliff and the Simpson-Bowles plan.
Weinstein explained both the politics and policy involved with the Simpson-Bowles plan and its development in 2010. He also connected that experience with the current budget debate, explaining the current political dynamics and what policies may play a role. The appearance went into many other topics and is well worth the watch.