tax cut

[Brad DeLong]

>Christian Gregory wrote:
>
>>As for Bergsten, I wonder about the "national savings" argument. The U.S.
>>has been running current account deficits for 20 years, with and without a
>>fiscal surplus, and thru the Plaza accord and the reverse Plaza. What good
>>will savings do when the dollar tanks? Wouldn't it matter more what form
>>they're in than that they are there?
>
>These guys are a bit coy about admitting it, but I bet a lot of 
>fiscally orthodox Dems - like Bergsten - wouldn't mind seeing a 
>recession harsh enough to balance the current account and cure the 
>U.S. of its profligacy. Structural adjustment comes home. They may 
>not even put it this bluntly among themselves, but it's the logical 
>outcome of their fetish for fiscal discipline.
>
>Doug

No! We do not! "Balance the world economy up, don't balance the world 
economy down," is our mantra...

Brad DeLong