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Lindsey Graham, Saxby Chambliss: Hike tax revenues, cut entitlement spending, hold defense spending

Monetary economists say monetary policy, not fiscal policy, affects the health of the U.S. economy. Now we have Keynesian Republicans like Sen. Lindsey Graham (R-SC) and Saxby Chambliss (R-GA) saying they'd raise taxes or cut tax deductions and cut entitlement spending if that would be good for the country.

Would cutting entitlement spending, raising tax revenues and holding defense spending near current levels help or hurt the economy? Or would all of the "doing something" churning in Washington do nothing but roil the stocks, bonds, currencies and commodities markets and put more people out of work? Would all of this affect the budget deficit or national debt?


Lindsey Graham: I would violate Norquist's pledge, By Tim Mak, 11.25.2012

Why the fiscal cliff matters, By Diana Furchtgott-Roth, 11. 23.2012

Posted by Donald E. L. Johnson on 11/25/2012 at 08:36 AM


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