Thursday, January 27, 2011
US faces “daunting economic and budgetary challenges” ahead:
Posted by therightscoop on Jan 27, 2011
He said the longer the nation waits to reduce budget deficits the larger the changes will need to be — and the more “disruptive” these changes will be for the economy. …
But Elmendorf has said that under a plausible scenario, the U.S.’s cumulative deficits over the next decade could hit $12 trillion — not $6 trillion.
In his testimony, Elmendorf said policymakers face a “difficult tradeoff” between implementing deficit reduction during a time when the economy is still struggling to gain strength versus delaying deficit cuts until the future when more far more draconian changes are needed. …Read More