Many economists, including Lawrence Summers, have highlighted the risks of the budget’s fiscal profligacy, namely inflation. But going deeper, the budget creates structural fiscal risks by crowding out future spending on things unrelated to the Biden administration’s social agenda. It limits government flexibility to address future pressing needs without much larger tax increases than the budget proposes. And the plan’s focus on basic income rather than work is a step in the wrong direction. These risks can be addressed—and in a progressive manner—but this budget needs to return to the starting line.
To begin, the Biden budget would compromise the […]
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