useful chart though in that provides a framework to evaluate fiscal policy alternatives. They use 2014 as the base year reflecting their understanding that cutting spending amidst a demand contraction like many Republicans (and a few Dems) would be economically foolish. Review the choices.
The chart suffers a bit from the reality that bending spending categories like retirement ages and social security benefit increases take time to materialize into significant savings. The savings in year one are quite modest but the power of compounding would turn them into very material savings over time. The Economist also chose to leave out reducing defense spending as an alterantive.
So what would you suggest?
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