"The Cost of the Looming Fiscal Crisis" Should Not Be a Throwaway Line
|Monday, 19 November 2012 05:33|
Unfortunately it is in an otherwise useful column by Thomas Edsall on evolving political attitudes. The second to the last sentence tells reader that:
"Nonetheless, the overarching division remains, and the battle lines are drawn over how to distribute the costs of the looming fiscal crisis."
But those wondering about the nature of the costly fiscal crisis to which Edsall is referring would follow the link to a Wall Street Journal piece on the fiscal showdown over the end of the Bush tax cuts and the sequester of spending that are scheduled to occurr at the end of the year. This crisis is one of excessive deficit reduction, it is resolved by smaller tax increases and smaller cuts in spending.
In other words, the crisis is that we are taking too much money away from people, which will hurt the economy. The crisis will be resolved by taking less money away from people. It is the opposite of a "costly fiscal crisis." Instead, we will be faced with a costly economic crisis if the tax increases and spending cuts are allowed to take effect.