Dem Congressman Jerry Nadler: Federal Deficit Being Cut "Too Fast"
REP. JERROLD "JERRY" NADLER (D-NY): If you look at the deficit, we brought it down in three years from 10.1 percent of GDP to, last year, 7.1 percent of GDP.T his year it will be about five and a half. That’s the largest deficit reduction, fastest, since the demobilization after World War II. It is too fast. It is having an inhibiting effect on the economic growth and employment.â€
Frankly, at this point -- and the president wants to get down to 1.7 percent of GDP by 2023. Too far. Once you're below about 3 percent of GDP -- the national debt as a percentage of GDP is going down or staying stable, and that's where you want to get to.
But the deficit is not our immediate problem; our immediate problem is an economy which is going to stay at 7.6, 7.8 percent unemployment indefinitely. Already, we've got a contractionary fiscal policy. We've got a fiscal policy that is inhibiting the economy. We should, from an economic point of view, be increasing the deficit right now somewhat. Worry about it later, but get jobs and the economy moving again. (Up with Steve Kornacki, April 14, 2013)
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