One component of the deal to raise the debt-ceiling is a requirement that Congress vote later this year on a "Balanced Budget Amendment" to the Constitution. Is such an amendment a good idea? At first glance, the idea seems attractive to a lot of people for whom the debt and deficits are seen as the key … Continue reading Would a Balanced Budget Amendment Help or Hurt?
A good article from Mark Thoma explaining what automatic stabilizers do, how they work, and why they are such an important policy in fighting recessions and keeping booms from getting out of hand. See here at The Fiscal Times.
According to reports coming from Washington today, the Senate has failed to reach any agreement on extending unemployment benefits. Next week benefits run out for hundreds of thousands of would-be workers and this economy is still not creating jobs. So, as a stopgap, the Senate proposes a "15-day" extension. Yes, you read that right: 15 … Continue reading Washington Fiddles While Would-be Workers Get Burned