NEW figures graphically illustrate the fundamentally unserious nature of the ongoing “fiscal cliff” negotiations in Washington. An analysis by the Committee for a Responsible Federal Budget found that President Barack Obama’s proposal would reduce the national debt from nearly 75 percent of GDP to 73 percent of GDP. And that minor reduction would take 10 years!
House Republicans, to their credit, have sought to negotiate a deal doing more to right the nation’s fiscal ship. But even their plan would simply lower the national debt to just 72 percent of GDP.
That 1 percent shift might not seem draconian to most people, but Barack Obama isn’t most people. Obama dismissed the House proposal out of hand, saying it was “out of balance.” The president wants far greater tax increases and is actually arguing for another round of stimulus spending. Never mind that the last several rounds of stimulus spending have had almost zero positive impact on the economy.