Battleground Budget

The world’s developed economies, of which the US is by far the largest and systemically most important, face a range of difficult political and social choices. President Barack Obama’s proposed federal budget acknowledges and addresses those choices and tradeoffs directly and fully for the first time in the post-crisis period.

MILAN – The world’s developed economies, of which the United States is by far the largest and systemically most important, face a range of difficult political and social choices. President Barack Obama’s proposed US budget acknowledges and addresses those choices and tradeoffs directly and fully for the first time in the post-crisis period.

Obama’s proposal is an important, honest, and politically courageous document. The debate that follows will largely determine whether the US shifts toward a strong, inclusive, and sustainable pattern of growth and employment, and how the burden of moving to such a path will be shared by Americans of various ages, educational levels, incomes, and wealth.

We know that powerful technological and global market forces have reduced dramatically the number of routine professional and blue-collar jobs, shifted employment options for the middle class toward the non-tradable side of the economy, and channeled growth in national income toward capital and high-end employment, with stagnating income elsewhere. Job creation remains weak, and employment continues to diverge from growth.

To continue reading, please log in or enter your email address.

To access our archive, please log in or register now and read two articles from our archive every month for free. For unlimited access to our archive, as well as to the unrivaled analysis of PS On Point, subscribe now.

required

By proceeding, you agree to our Terms of Service and Privacy Policy, which describes the personal data we collect and how we use it.

Log in

http://prosyn.org/cS5YulV;

Cookies and Privacy

We use cookies to improve your experience on our website. To find out more, read our updated cookie policy and privacy policy.