Long-Term Deficits

For indispensable reporting on the coronavirus crisis, the election, and more, subscribe to the Mother Jones Daily newsletter.


Martin Wolf says that although long-term deficits are a problem, it’s too early to rein in spending right now:

What is needed, instead, are credible fiscal institutions and a road map for tightening that will be implemented, automatically, as and when (but only as and when) the private sector’s spending recovers. Among the things that should be done right now is to put prospective entitlement spending — on public sector pensions, for example — on a sustainable path. It is, in short, about putting in place a credible long-term tightening that responds to recovery automatically.

That sounds like a good idea to me.  That is, it would sound like a good idea if I could think of any way to make automatic future stabilizers truly credible.  Right now, I don’t think you could pass any significant entitlement cuts or tax increases in the first place, let alone pass them embedded in a some kind of structure that seemed truly invulnerable to future political shifts.  But I’m all ears if anyone has any ideas.

(Adding: I’m entirely in favor of a Social Security commission, similar to the 1983 commission, tasked with producing a conventional basket of small revenue increases and small benefit cuts that would balance Social Security’s book in the long term.  This is, admittedly, a relatively small thing, since Social Security’s fiscal condition has improved over the past few years and is now projected to eventually go out of balance by only about 1.5% of GDP.  But aside from the virtue of even small acts of fiscal rectitude, it would also have the huge virtue of taking Social Security off the table as a political issue.  If we could, at long last, get the Washington Post and the Wall Street Journal and the Peterson folks to quit droning on endlessly about this, we might actually clear the way for discussion of some real issues. And it’s the kind of thing that can be put in place now and credibly be expected to unfold as planned.)

SIX TRUTHS

Reclaiming power from those who abuse it often starts with telling the truth. And in "This Is How Authoritarians Get Defeated," MoJo's Monika Bauerlein unpacks six truths to remember during the homestretch of an election where democracy, truth, and decency are on the line.

Truth #1: The chaos is the point.

Truth #2: Team Reality is bigger than it seems.

Truth #3: Facebook owns this.

Truth #4: When we go to work, we're in the fight.

Truth #5: It's about minority rule.

Truth #6: The only thing that can save us is…us.

Please take a moment to see how all these truths add up, because what happens in the weeks and months ahead will reverberate for at least a generation and we better be prepared.

And if you think journalism like Mother Jones'—that calls it like it is, that will never acquiesce to power, that looks where others don't—can help guide us through this historic, high-stakes moment, and you're able to right now, please help us reach our $350,000 goal by October 31 with a donation today. It's all hands on deck for democracy.

payment methods

SIX TRUTHS

Reclaiming power from those who abuse it often starts with telling the truth. And in "This Is How Authoritarians Get Defeated," MoJo's Monika Bauerlein unpacks six truths to remember during the homestretch of an election where democracy, truth, and decency are on the line.

Truth #1: The chaos is the point.

Truth #2: Team Reality is bigger than it seems.

Truth #3: Facebook owns this.

Truth #4: When we go to work, we're in the fight.

Truth #5: It's about minority rule.

Truth #6: The only thing that can save us is…us.

Please take a moment to see how all these truths add up, because what happens in the weeks and months ahead will reverberate for at least a generation and we better be prepared.

And if you think journalism like Mother Jones'—that calls it like it is, that will never acquiesce to power, that looks where others don't—can help guide us through this historic, high-stakes moment, and you're able to right now, please help us reach our $350,000 goal by October 31 with a donation today. It's all hands on deck for democracy.

payment methods

We Recommend

Latest

Sign up for our free newsletter

Subscribe to the Mother Jones Daily to have our top stories delivered directly to your inbox.

Get our award-winning magazine

Save big on a full year of investigations, ideas, and insights.

Subscribe

Support our journalism

Help Mother Jones' reporters dig deep with a tax-deductible donation.

Donate