By Marshall Kirby, Policy Analyst
As a citizen, the debate over budget cuts and the fiscal crisis has permeated throughout the media. The one thing all sides agree on is that something will need to be done to shore up America’s fiscal position sooner rather than later. It seems hard to believe that a decade ago discussion of the US deficit raised little concern even from well respected “deficit hawks.” However, over the last ten years, our country has consistently spent far more than it received in revenues. This has led us to the point where even those analysts who believed that America’s fiscal position was strong have now raised their eyebrows with regard to our country’s long term budget sustainability and solvency.
Right now, Republicans and Democrats both acknowledge the situation and the need to produce meaningful budget cuts. However, Republicans have seized momentum from the political wind and have put forth a budget in the House of Representatives which puts through deeper cuts in non-defense discretionary spending than the President’s own budget. Both the Administration’s budget and the one put forth in the House have received a lot of criticism with a mix of praise. Deficit hawks and Tea Party supporters have praised the House budget, and less hawkish analysts also concerned with education and infrastructure have been sympathetic towards President Obama’s.
I’d venture a guess based on polling numbers from various news agencies and organizations that the average American is fairly concerned with America’s and their own state’s deficit problems. At the same time most are more deeply concerned about the economy, growth, and employment. Coming out this week in the Washington Post (article can be viewed here) was a report by Mark Zandi, an economist at Moody’s which has predicted that if the House budget were to become our nation’s budget 700,000 jobs Read the rest of this entry »