June 30, 2010

JAMES PETHOKOUKIS: Growth only way to avoid U.S. economic collapse.

Lucky this baby didn’t land during the G20 meeting! America’s fiscal judge, the Congressional Budget Office, has produced another nightmare report. The bad news: U.S. debt-to-GDP will hit 858 percent by 2080, roughly ten times today’s level. The “good” news: The economy would implode long before. But avoiding that fate requires just the right balance now between austerity and a push for real, private-sector led economic growth.

The Administration seems to be pursuing the opposite strategy, for some reason. At least, if you were trying to kill private-sector led economic growth, it’s hard to see what you’d do differently.