Statement from Michael Peterson on Fiscal Cliff Agreement
“The agreement to avert the fiscal cliff is a necessary step to protect the fragile economic recovery in the short term. But the agreement obviously does not address the fundamental fiscal challenges that our nation faces.
The goal of any sustainable fiscal policy must be to stabilize the debt as a share of the economy and put it on a downward path. Until we have a plan that stabilizes our federal debt, uncertainty and lack of confidence will continue to be a drag on our current economy and threaten our future prosperity.
The fiscal cliff was a significant missed opportunity to put the nation on a sustainable fiscal path. The President and Congress must continue to work toward a comprehensive fiscal plan that addresses the major drivers of our deficits and stabilizes the debt for the long term.
There is no shortage of fiscal policy options that can stabilize the debt over the long term, while protecting the fragile recovery and the most vulnerable in our society. The sooner we agree on a sustainable bipartisan fiscal plan, the better.”
Further Reading
National Debt Puts Upward Pressure on Inflation and Interest Rates
America’s unsustainable fiscal outlook can have “significant consequences for price stability, interest rates, and overall economic performance,” according to a new report.
Here’s What a Budget Gimmick Is and How to Spot One
Lawmakers should avoid the use of budget gimmicks, which can hide the true fiscal impact of legislation.
What Is the Farm Bill, and Why Does It Matter for the Federal Budget?
The Farm Bill provides an opportunity for policymakers to comprehensively address agricultural, food, conservation, and other issues.