Download the paper (PDF) by Joseph E. Stiglitz
This paper outlines proposals which should reduce the deficit by more than the goal of $4 trillion, increase growth, reduce the deficit/GDP ratio, and put the country on a more sustainable path. It offers an enunciated set of criteria against which we can judge the framework of shared sacrifice proposed by the Fiscal Commission.
- Deﬁcit reduction is not an end in itself, but a means to other objectives.
- Spending that increases debt but simultaneously (over the long run) increases GDP can lower the debt-to-GDP ratio.
- Proposals from the Fiscal Commission Chairmen will lead to a less progressive tax system and a more divided society.
- Deficit reduction goals must not be achieved on the backs of the less politically powerful or sacrifice the national interest to special interest groups.
Read “Principles and Guidelines for Deficit Reduction,” by Roosevelt Institute Senior Fellow Joseph E. Stiglitz.