February 10, 2012

Preview: Mercatus Scholars Weigh in on President's Budget

Veronique de Rugy

George Gibbs Chair in Political Economy

David M. Primo

Senior Affiliated Scholar

Bruce Yandle

Distinguished Adjunct Fellow
Summary

The president will present his budget to Congress. Here’s a snapshot of what Mercatus economists are saying.

Contact us
To speak with a scholar or learn more on this topic, visit our contact page.

On Monday, the president will present his budget to Congress, and here’s a snapshot of what Mercatus economists are saying:

“The president and, frankly, most of America, are not willing to face the cold, hard reality that, if we don’t cut spending dramatically and address the root causes of our fiscal problems going forward (Social Security, Medicare, and Medicaid), taxes will have to go up for everyone. We can’t continue spending forever and not pay for the spending. It’s pure fantasy to suggest that taxes on the rich alone will indefinitely postpone the consequences of a mountain of debt and the interest payments that come with it. In fact, non-millionaires will likely pay for it in the form of lower wages, higher prices, and fewer jobs.” Veronique de Rugy, Mercatus Center Senior Scholar

“Many critics of entitlement reform say that now is not the time for these kinds of changes, and economic recovery should be the priority. Economic recovery is important, but what many observers miss is that a focus on our long-term problems will help us solve our short-run problems. If the tax code is simplified and businesses can invest and hire without worrying about what the government’s next ‘pet industry’ will be, the economy will work more efficiently.” David Primo, Mercatus Center Senior Scholar

“The president’s blueprint recommends tax punishments for firms that expand globally, tax benefits for companies that employ people in hard-pressed regions, and tax incentives for those that attempt to produce the right stuff. But pulling strings in an effort to manage the economy just doesn't work. It is time for the puppeteers to back off the stage, clear the way and give free people a chance to show what they can do when tax and regulatory burdens are low and opportunity is high.” Bruce Yandle, Mercatus Center Senior Scholar