Making Labor Less Expensive Helps Firms Hire

Honest Talk About The Deficit Is Risky. Voters Are More Enthusiastic About The Abstract Notion Of Deficit Reduction Than About The Painful Details Of Accomplishing It.

Our Estimates Suggest That A Tax Increase Of 1 Percent Of Gdp Reduces Output Over The Next Three Years By Nearly 3 Percent. The Effect Is Highly Significant.

Fewer People Working Means Permanently Lower Tax Revenues.

Cold-turkey Deficit Reduction Would Cause A Significant Recession. A Recent Analysis By The Congressional Budget Office Estimated That Going Headlong Over The Cliff Would Cause Our Gross Domestic Product, Which Has Been Growing At An Annual Rate Of Around 2 Percent, To Fall At A Rate Of 2.9 Percent In The First Half Of 2013.

The Goal Of Long-run Economic Growth Without Asset Price Bubbles Is Not Only Achievable, But Is Something We Should Expect If We Put A Sound Regulatory Framework In Place And If Policymakers Remain Vigilant.