The Budget Surplus: Don't Blow It
When the Federal Reserve, the Office of Management & Budget, the Congressional Budget Office, the Democrats, the Republicans and the nation's top economists all agree, it is time to declare victory for the notion of a New Economy. Whether it's the debate over interest rates or the negotiations over the budget surplus, policymakers now start their discussions with the assumption that the economy can grow significantly faster with less inflation and lower unemployment than it could for the past two decades. Corporate CEOs, investors, and anyone living in Silicon Valley, of course, have been saying this for some time, as information technology and globalization transformed their lives. Now a torrent of tax revenues from higher incomes and stock market gains is converting Washington--so much so that a certain giddiness is taking hold and a windfall mentality is in the air. Our advice is to take a moment for some sober reflection.
To continue reading this article you must be a Bloomberg Professional Service Subscriber.
If you believe that you may have received this message in error please let us know.
- One of the World’s Hottest Stocks Is Now Tumbling
- This Rare Bear Who Called the Crash Warns Housing Is Too Hot Again
- Recent ‘Odd’ Market Moves May Be a Warning Sign for Stocks
- The Global Economy Is Doing Just Fine, But the Davos Elite Is Worried
- U.S. Stocks Gain as Senate Votes to End Shutdown: Markets Wrap