Beware of the "Fiscal Straitjacket"
Jeffrey Sachs, Earth Institute at Columbia University | January 28, 2009
The debate over the ways to revive the US economy has an explicit focus on the immediate and short-term: save the economy now. ++ But in the absence of a medium-term strategy, the stimulus plan will simply add to an already large deficit and the government will most likely find itself locked in a “fiscal straitjacket that could paralyze public sector action in critical areas for a decade or more to come.” ++ Obama needs to steer clear of further tax cuts which will jeopardize long term spending plans on education, energy and healthcare.
Tags: | long term spending |
tax cuts |
medium term |
financial crisis |
Economic crisis |
US economy |