Fiscal Recovery Plan in the FY 2011 Budget?
There's an intriguing passage in the White House press release on President Obama's stimulus speech at Brookings yesterday:
"An overall approach to fiscal discipline in the budget. Although additional resources are needed in the short-run to address the unemployment crisis, the Administration is committed to doing what we need to bring the medium-term deficit under control – and is exploring a range of steps to take as part of the FY2011 budget process..."
As we've urged ("CRFB Calls for Fiscal Recovery Plan"), the announcement of a medium-term fiscal consolidation plan, to be put into effect once the economy is on firmer footing, would send a powerful signal to our trade and financial partners, at home and around the world, that the United States is taking serious steps to put our fiscal house in order.
At a time when sovereign debtors are under great and increasing pressure (look at Greece, Spain, the U.K., and Dubai in the past week - to name a few), it is the time for the United States to step up and take a leadership role in restoring fiscal sanity to the world.
And the FY 2011 budget could be a powerful vehicle.