David Leonhardt on the sequester, the debt, the deficit and economic growth
February 28, 2013
GUEST:Â DAVID LEONHARDT
Tomorrow is the day the sequester is set to kick in — that’s the $85 billion in government spending cuts for the coming year that resulted from the failure of Congress in 2011 to raise the debt ceiling (how much money the country can borrow).Â Back then Republicans wouldn’t agree to raise the debt without making significant cuts to the deficit (how much money the government spends vs. how much money it takes in), Democrats wouldn’t agree to cuts in deficit spending without an increase in taxes, and Republicans wouldn’t agree to increase taxes.Â They’re still at a standstill so what can we do it get things going?Â That’s the question we’ll pose to our guest, New York Times Washington bureau chief and Pulitzer Prize winner DAVID LEONHARDT We’ll start off talking about the politics of sequestration and its impact on the economy.Â Then, we’ll tackle the broader issues surrounding our national debt and deficit.Â In his new e-book, Here’s the Deal, Leonhardt says that the answers lie neither in tax increases or spending cuts but in government investment that leads to economic growth.
Photo by Flickr user Kynan Tait