PIMCO’s Bill Gross: Stimulus Now

Thanks to MardyS for bringing PIMCO’s Bill Gross: Stimulus Now to my attention.

You can also read the story as PIMCO Founder To Deficit-Obsessed Congress: Get Back To Reality.

According to both versions, Bill Gross said:

“Solutions from policymakers on the right or left, however, seem focused almost exclusively on rectifying or reducing our budget deficit as a panacea,” Gross writes. “While Democrats favor tax increases and mild adjustments to entitlements, Republicans pound the table for trillions of dollars of spending cuts and an axing of Obamacare. Both, however, somewhat mystifyingly, believe that balancing the budget will magically produce 20 million jobs over the next 10 years. President Obama’s long-term budget makes just such a claim and Republican alternatives go many steps further. Former Governor Pawlenty of Minnesota might be the Republicans’ extreme example, but his claim of 5% real growth based on tax cuts and entitlement reductions comes out of left field or perhaps the field of dreams. The United States has not had a sustained period of 5% real growth for nearly 60 years.”

In the first version, which is from firedoglake, the blogger says

Literally, the only people warning about the dangers of short-term budget cuts are the conservative former head of George W. Bush’s Council of Economic Advisers, and Bill Gross. Everyone else believes in the confidence fairy.

This statement is patently untrue as can be attested to by the collection on my politics blog, here, of all the people warning about the dangers short-term budget cuts.

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