CRFB's Policy Director Says "Stabilize the Debt"
CRFB's Senior Policy Director Marc Goldwein was the subject of a CNN piece (audio here) on the goal of deficit reduction (and the life of a budget wonk). Marc said that the focus of fiscal policy should be to stabilize the debt as a percent of GDP and get it on a downward path. Even though "Stabilize the Debt" doesn't make for a very good bumper sticker (despite the fact that he has one), it is a reasonable target for deficit reduction.
As he says:
We need to have a sustainable budget where our debt is growing slower than the economy...That means we can still run deficits, but those deficits have to be smaller than our economic growth.
Ideally, deficits would not be higher than one to two percent of GDP in the long-run. That would enable the debt to shrink as a share of GDP and keep it at a sustainable level. Of course, getting there with a plan that is able to pass both chambers of Congress and be signed by the President is the difficulty. It require tough choices and, above all, it will require compromise.
You too can make the tough choices using our updated "Stabilize the Debt" simulator to see if you can stabilize the debt. Also, Lisa Desjardins, the author of the piece, can be followed on Twitter at @LisaDCNN.