February 1, 2011

Corker-McCaskill Proposal Doesn't Go Far Enough

Antony Davies

Senior Affiliated Scholar

The politicians are going to see the cap in the Corker-McCaskill plan as something ambitious, but it doesn’t come close to what we need if we want to avoid the debt levels of Greece.

Even if we can stick to the proposed glide path, we cross the magic 120% mark - the point at which Greece’s economy melted down - five years from now.

To balance the budget, we need to bring spending down to 2005 levels and hold it there.  This requires a 30 percent reduction in spending from current levels.  The Corker-McCaskill plan allows for a 7 percent increase in spending. 

The public should not see this as Congress getting its house in order.  This isn’t a big enough step.