Just a few notes from the broadsheets (sorry, you young whippersnappers, but I still like to read the actual paper) to bring to your attention.
Much of this sounded about right to me, as per where cliff negotiations are headed, and while it may sound optimistic to some readers, I still think the odds are that we have to go over the cliff to get to this endgame. I hope I’m wrong, but as you’ll see if you give this a close read, there’s a lot of moving parts and each one is attached to sensitive politics. Still, if we go over briefly, that’s not recessionary (which isn’t at all to say it’s desirable).
Next, I welcome help from any and all in resolving this ridiculous fiscal trap we’ve set for ourselves, but some of the positions of this “Fix the Debt” group, as described here in the WaPo sound more like their group should be called You Fix the Debt—We Want a Tax Cut.
Nice pop on revised GDP in the third quarter–was 2%, is now 2.7%. But “…the revision was driven by increased inventory accumulation and a jump in federal spending — factors unlikely to be repeated in the current fourth quarter.”
Finally, in an earlier post, I recommended this NPR story on the hidden costs of raising the eligibility age for Medicare from 65 to 67. But a commenter, who also liked the piece, points out that Julie Rovner, the NPR reporter, called the age-increase proposal “popular.” It’s not popular at all, as this poll result shows. Sure, there are policy makers who like it. But that doesn’t make it popular. That’s a classic beltway mistake—a few big shot politicians get jazzed up on something, and all the sudden it’s popular, despite the fact that a) it’s not, and b) at least in this case, it shouldn’t be.