A new report called “The Cost of Crisis-Driven Fiscal Policy” is confirming what we all know, that self inflected wounds is not good for you. The report concludes that crisis-driven government and the resulting fiscal policy uncertainty has directly harmed the American economy by increasing the unemployment rate by 0.6%, or the equivalent of 900,000 jobs. “The Cost of Crisis-Driven Fiscal Policy” was prepared by Joel Prakken of Macroeconomic Advisers, LLC, a leading independent research firm, for the Peter G. Peterson Foundation.
Michael A. Peterson, President and COO of the Peter G. Peterson Foundation, said: “This report makes clear that self-created fiscal crises have significant costs to our economy and to American families. These partisan battles not only threaten our fragile economic recovery, but they have not resulted in any comprehensive solution to our real fiscal challenge, stabilizing our long-term debt.”
“Partisan divided government has failed to address our long-term fiscal challenges sensibly, instead encouraging policy that is short-sighted, arbitrary, and driven by calendar-based crises,” said Prakken of Macroeconomic Advisers. “Based on this report’s findings, we can assert confidently that the crisis-driven fiscal policies of the last several years have damaged our still-struggling economy. One can only hope that our policymakers will implement more sensible policy in the future.”
