In this space I have often criticised the Obama administration for failing to lead on US fiscal policy. Its recent budget, and the revised outline that instantly replaced it, were entirely unserious. Even now, the White House lacks a detailed proposal either for dealing with the immediate political challenge of raising the statutory debt ceiling and thus avoiding default – time for this runs out in a few more weeks – or for addressing the longer-term fiscal problem.
Are the Republicans any more serious? Not really. If ever there was a race to the bottom in economic dialogue, this is it.
In Congressman Paul Ryan’s budget, which the House of Representatives passed on a party-line vote, the Republicans do have a plan, of sorts, for long-term deficit control. It is a militantly conservative proposal, calling for deep spending cuts and avoiding any and all tax increases. It deliberately offers no basis for compromise with Democrats – which Republicans know is a necessary condition for any long-term proposal to be enacted and implemented.