The Case for More Stimulus (And Bigger Deficits)
policyshop.net — Exit polls taken on election day leave little doubt that Americans care much more fixing the economy than lowering the defict. Nearly 60 percent of voters said the economy was the most important issue facing the country; just 15 percent named the deficit. Among elites in Washington, though, this thinking is reversed. Leaders from both political parties agree that reducing the deficit is a top priority and are gearing up to tackle this challenge as part of the fiscal cliff negotiations. In other words, the voters spoke clearly on election day -- only to be promptly ignored. But just for argument's sake, let's say that our political system really did listen to the voters. What would a policy approach look like that focused first and foremost on fixing the economy and put deficit reduction on the back burner?