"Earlier this month, Tim Pawlenty, the former governor of Minnesota, promised that his package of tax cuts, spending cuts and regulatory reforms would boost real gross domestic product growth to 5 percent annually for 10 years, cutting the deficit almost in half along the way. Sounds good, right? But why is Pawlenty setting his sights so low?
Economists, of course, think his opening bid already places him in fantasyland. âThe trend growth rate is not going to be 5 percent in the United States,â Douglas Holtz-Eakin, a top Republican economic adviser and former director of the Congressional Budget Office, told Talking Points Memo. âThe market just doesnât support that.â
Alan Blinder, a former Clinton administration economist and Federal Reserve vice chairman, had a cheekier take.
âTrend growth is 3 percent or so,â he wrote in an e-mail to me. âFive percent growth would be 2 percentage points higher, which should cut the unemployment rate by about one percentage point per year. So after 10 years, it will have fallen from 9 percent to minus-one percent. Nice trick!â
Pawlenty wasnât impressed by such defeatist math. âIs this aggressive and bold?â he responded on Fox News. âAbsolutely. But I donât buy into the declinist view and attitude of President Obama that weâre going to settle for anemic growth or average growth or that Americaâs going to be a laggard.â "
http://www.bloomberg.com/news/2011-...e-magic-beans-for-white-house-ezra-klein.html
---what a douche
Economists, of course, think his opening bid already places him in fantasyland. âThe trend growth rate is not going to be 5 percent in the United States,â Douglas Holtz-Eakin, a top Republican economic adviser and former director of the Congressional Budget Office, told Talking Points Memo. âThe market just doesnât support that.â
Alan Blinder, a former Clinton administration economist and Federal Reserve vice chairman, had a cheekier take.
âTrend growth is 3 percent or so,â he wrote in an e-mail to me. âFive percent growth would be 2 percentage points higher, which should cut the unemployment rate by about one percentage point per year. So after 10 years, it will have fallen from 9 percent to minus-one percent. Nice trick!â
Pawlenty wasnât impressed by such defeatist math. âIs this aggressive and bold?â he responded on Fox News. âAbsolutely. But I donât buy into the declinist view and attitude of President Obama that weâre going to settle for anemic growth or average growth or that Americaâs going to be a laggard.â "
http://www.bloomberg.com/news/2011-...e-magic-beans-for-white-house-ezra-klein.html
---what a douche
