As An Economic Historian, I Appreciate What

Honest Talk About The Deficit Is Risky. Voters Are More Enthusiastic About The Abstract Notion Of Deficit Reduction Than About The Painful Details Of Accomplishing It.

In The Four Decades After World War Ii, Manufacturing Jobs Paid More Than Other Jobs For Given Skills. But That Is Much Less True Today. Increased International Competition Has Forced American Manufacturers To Reduce Costs. As A Result, The Pay Premium For Low-skilled Workers In Manufacturing Is Smaller Than It Once Was.

Tax Increases Appear To Have A Very Large Sustained And Highly Significant Negative Impact On Output.

Cold-turkey Deficit Reduction Would Cause A Significant Recession. A Recent Analysis By The Congressional Budget Office Estimated That Going Headlong Over The Cliff Would Cause Our Gross Domestic Product, Which Has Been Growing At An Annual Rate Of Around 2 Percent, To Fall At A Rate Of 2.9 Percent In The First Half Of 2013.

Making Labor Less Expensive Helps Firms Hire People.