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    Boehner's Olive Branch: More Revenues, but Only Through Growth

    Sometimes in post-election America, there is excitement about what the future will bring. This time around, the prospect is rather horrifying. America is racing, pedal to the metal, toward the fiscal cliff—a mixture of tax hikes and defense cuts that loom just after New Year’s. The same Congress and the … More

    Defense Budget Competing with Entitlement Spending: A Crisis Point

    Today, the threats to our national security are complex, fluid, and hard to fully comprehend. This requires a serious look at what the U.S. can do to affect events worldwide that would produce outcomes favorable to our interests, rather than allowing other nations to drive events, some of which are … More

    Chart of the Week: Defense Budget Cuts Gamble with National Security

    The third and final presidential debate between President Obama and former Governor Mitt Romney will feature several different questions on the role of America abroad and other aspects of foreign policy. Obama and Romney will likely address the nation’s impending spending crisis and automatic defense budget cuts, known as sequestration. … More

    Sequestration: Spending Cuts Needed, but Get the Policies Right

    Tonight’s presidential debate is a good opportunity for President Obama and Governor Mitt Romney to tell the nation what they would do about our spending crisis and the looming fiscal cliff—in particular, the problem of the automatic defense budget cuts. Leadership on this issue is crucial. Some conservative lawmakers are … More

    As Spain and Greece Burn, Estonia Offers a Lesson

    Over the past few days, new strikes and riots have convulsed Greece and Spain. Conventional wisdom (including from economist Paul Krugman) suggests that cuts in government spending—often described as “austerity”—are a primary cause of the economic downturn in these nations and across much of Europe. This “demand deficiency” hypothesis leads … More

    Why Larry Summers Is Wrong About the British Economy

    Harvard economist Larry Summers claims in The Washington Post that aggressive fiscal austerity in the U.K. is the primary cause of its continued economic stagnation. But the former Obama advisor understates both the necessity for a credible British fiscal plan in 2010 and the structural factors that have been a … More

    Flawed Sequestration Report Reinforces Need to Reverse Damaging Defense Cuts

    The Obama Administration’s recent report on how it would slash nearly $500 billion more from national defense over the next decade leaves lawmakers, the military, the defense industry, and the American public largely in the dark about the consequences of these massive spending cuts. Nevertheless, the report—which was submitted to … More

    Are Spending Cuts as Harmful as Tax Increases?

    Wednesday’s warning by the Congressional Budget Office (CBO) that the fiscal cliff is likely to push the economy back into recession should bring things sharply into focus for lawmakers. The CBO is correct that the fiscal cliff will lead to a recession, but its report contains faulty economic reasoning. The … More

    Hidden Effects of the Sequestration Cuts to Defense

    One of the interesting and disturbing aspects of the ongoing debate about how the sequestration cuts will gut the defense budget by nearly $500 billion over the next 10 years has been the stance of the major defense contractors. Their position has started to shift. As the battle in Washington … More

    A Lesson from Greece

    We’ve corrected Paul Krugman in the past, when he mistakenly invoked imaginary British spending cuts as proof that undercutting Keynesian hydraulics will demolish an already limp economic recovery. This time he points to Greek austerity – or “spending cuts” – as he characterizes it. “Not a day goes by without … More