Al Simpson Joins the Announcement Effect Club
The Announcement Effect Club has a new member after this weekend—Fiscal Commission Co-Chair Alan Simpson. Simpson discussed the dangers of the fiscal cliff and the need for deficit reduction in an interview with Neil Cavuto. In particular, Simpson focused on the need for having a long-term plan: the direction and certainty it would provide the country would be very beneficial.
We don’t have to put stuff in legislative language before December 31st. But do a plan...
Germany has a plan. It may or may not be a good but the [bond traders] and the raters stay away. If we had a plan, you wouldn’t hear mumbling out of Fitch or Moody's or the rest of them. You wouldn't hear about a negative rise. They would be laying back in the weeds to see if we could do it.
The Announcement Effect Club is a group composed of those who have states that the U.S. could boost the economy in the short run if it provides a longer-term plan to address our federal debt. Considering the uncertainty from the fiscal cliff at the end of the year, announcing a long-term plan would be especially helpful at this time.