Spending Cuts Endorsed by 150 Economists
June 3rd, 2011
The Crisis Deepens....
As the battle over the debt ceiling heats up, small government advocates today received good news from over 150 economists who endorsed spending cuts. In a letter written to House Speaker John Boehner, the letter called for deep spending cuts and strong budgetary reforms as a key component of the debt ceiling battle, or risk harm to private sector job growth. Signatories of the letter include Nobel laureate Robert Mundell, as well as economists from New York University, Georgetown University, and from conservative think tanks like the American Enterprise Institute. The letter went on to say that passage of the Stimulus bill in 2009 has been “unsuccessful” and the controversial health care law will cause “uncertainty for private sector job creators”.
Currently, Democrats and Republicans have agreed to cut as much as $1 trillion during the negotiations, but major budgetary reforms to entitlements are still in limbo due to a disagreement on raising taxes. Needless to say, this letter will help shift the discussion to cutting spending and committing to reforms that would cut government waste and unnecessary spending. Whether or not Washington will heed this call to action, though, it another matter entirely.
