Sunday, April 18, 2010

Spending cuts not in our future

Writing in today's NY Times, Tyler Cowen cites progress in other countries (including Canada) towards cutting government spending.  If others can do it, so can we.  Perhaps. 

It's only been a few weeks since CBO reported that we can insure millions more and cut the deficit.  Most people seemed to believe it.  And it's only been a few days since the President took credit for being a tax cutter.  If you believe neither claim, do you expect we can follow Canada's lead?  Besides, debt can be slashed by inflating the dollar.  And we have taken some steps in that direction.

Britain had to teeter on the brink before Thatcher could start a serious reversal.  Reagen found a rare political seam when real tax reform could become law in 1986.  Neither condition is likely in our case.  After all, serious people say (who knows what they think) that health reform saves money and Obama is a tax cutter.