And to this we say, AMEN!
The right policy, which also happens to be the only one with any hope of being adopted in the foreseeable future, is a barbell approach, with more stimulus on one side and, on the other, more deficit reduction enacted now to take effect over time.
– Peter Orszag
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In economics, things take longer to happen than you think they will, and then they happen faster than you thought they could.
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Global Macro Monitor
The stimulate now, pay later barbell is excactly what created the fiscal cliff!
We agree, but constructing a long-term legally binding budget and debt plan with some stimulus, which compliments and provides externalities that generate productivity gains for the private sector would unleash the animal spirits and boost the economy, in our opinion.
Thanks for the comment, JJB.