Best way to cut the deficit: Grow the (green) economy

  • Published on February 6th, 2013

It’s not rocket science. It’s basic economics.

Invest in job creation. More jobs cascade into more revenues across the economy. More working people leads to more tax revenue.

The Congressional Progressive Caucus has a proposal that would avoid the sequester and cut the deficit in a healthy way, while leading balancing act: deficit reduction through job growth and military cutsto bigger growth. At the core of the plan is a mix of new revenues (mostly from cutting deductions – remember Mitt Romney pushing that idea? Ha! If the Democrats propose it, the GOP will fight it tooth and nail) and investment that would create more than 1 million jobs (based on President Obama’s proposals for job creation that the GOP has also fought tooth and nail).

You’d think something that would GROW the economy would be welcomed by everyone, especially with reports that the last quarter of 2012 was a shrinker, brought on by TOO MUCH CUTTING.

But the GOP in Congress isn’t really interested in job growth, or in a growing economy, or even, really, in cutting deficits (Paul Ryan’s vaunted budget slashed Social Security and Medicare but didn’t actually cut the deficit much).

No, the GOP plan is mostly about sticking it to the Democrats any way they can. Making political points. As Greg Sargent notes at the Washington Post,

Needless to say, this plan … has no chance whatsoever of passing Congress. Which is exactly the point: No plan that prioritizes job creation as the best means of reducing the deficit; no plan that cuts defense while determinedly avoiding any cuts that would hurt the poor and elderly; no plan that includes equivalent concessions by both sides — could ever have a prayer in today’s Washington. It’s yet another indication of how out of whack Washington’s priorities are.

You can read the whole plan here.

About the Author

Jeremy Bloom is the Editor of RedGreenAndBlue. He lives in New York, where he combines his passion for the environment with his passion for film, and is working on making the world a better place.