A Fiscal Policy Fit for the Next Crisis

By Clive Crook

Re-arming US fiscal policy for aggressive use the next time we need it is not just a matter of controlling debt in the medium and longer term. It also requires structural improvements in other aspects of fiscal capacity: specifically, more powerful automatic stabilisers. In this FT column, I suggest three possiblities: a national sales tax, curbs on tax relief for debt, and a much-expanded Trade Adjustment Assistance program.   

This article available online at:

http://www.theatlantic.com/national/archive/2011/06/a-fiscal-policy-fit-for-the-next-crisis/241182/