Social Security, you say, is forever sustainable. How so?
The U.S. as a sovereign nation that controls its own currency can never ‘run out’ of money to pay for Social Security, unless Congress orders it to – an irrational and self-defeating move. Only growing the economy can fix the problem of providing real goods and services to our seniors.
Will there be a government shutdown?
It is possible, given the role of Tea Party members in the GOP. Old guard Republicans remember how politically damaging the 1995 shutdown was. Tea Party members may soon learn Americans don’t like to elect public servants who refuse to serve the public purpose.
Your view of the GOP’s deficit reduction plans and the Democratic response?
Such draconian austerity measures, if passed, would surely undermine the U.S. global economic leadership, security, and well being. The GOP should remember Hoover’s attempts to balance the budget. Unfortunately, I don’t see a Roosevelt among the Democrats.
Will there by a default on U.S. borrowing?
Only if it’s voluntary – if Congress makes the political decision to prevent the government from paying its debts, which would be reckless and, likely, unconstitutional. The Federal Reserve in coordination with the Treasury always guarantees the U.S government’s debt.
You back a job guarantee program. Why?
It has the highest primary and secondary employment effects of any fiscal policy. It’s the proper safety net for those who want jobs, not handouts. The cost of not having it is the wasted human potential and the foregone real contribution of the unemployed to our economy.