A 40 Percent Chance of Economic Doom

MZ: What that means is we need policymakers to do more. They can?t just pass parts of this and stop. They do need to be thinking about what policies will help the economy [in the] longer-run, and the president?s doing that, as are the Republican proposals. In fact, most if not all of the Republican proposals are good ones, but they?re focused on the longer-run. They?re not focused on ?how do I avoid a recession in the next few months?? So I think we need to pursue other policies. That [includes] everything [from] ensuring that our long-term fiscal situation is in order, to tax reform, to the other proposals about regulatory reform and trade policy. It?s very important for policymakers to pass this near-term help for the economy and make sure we don?t go back into a recession. If we do, then all other problems will become much more difficult. But [it?s] also [important] to focus on these longer-term policy issues so we can help the economy in 2013, 2014, or 2015.

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