Bernanke Urges Deficit Reduction
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WASHINGTON — Federal Reserve Chairman Ben Bernanke Wednesday urged lawmakers to commit to reducing the nearly $2 trillion budget deficit, warning that the government can’t borrow "indefinitely" to meet the growing demand on its resources. Mr. Bernanke also reiterated that the pace of economic contraction appears to be slowing, setting the stage for a return to growth later this year. But that growth won’t be robust, he said. "Unless we demonstrate a strong commitment to fiscal sustainability in the longer run, we will have neither financial stability nor healthy economic growth," Mr. Bernanke said in prepared testimony to the House Budget Committee. (Read the full remarks.) He also told lawmakers that the Fed won’t accommodate wider budget deficits by simply printing money, saying the central bank "will not monetize" the federal debt. |
Well duh of course, but where do we cut two trillion? Where do we get 2 trillion in extra taxes? Soaking the rich isnt going to do it. Cutting Defense isnt going to do it. So who is willing to sacrafice? Is there any compromise here between liberals who want defense cut and taxes raised on the rich, and conservatives who want taxes balanced and entitlements cut?
Im willing to trade raising the corporate tax rate if liberals will agree to cut social security or medicare benefits by the same amount.