Overview for economy

GOP's Debt Fight Strategy Backfires

Initially, many Republicans believed Obama would be blamed for any pain from not increasing the debt ceiling. That party's beginning to realize that was wishful thinking. A very strange thing happened this week—truth appeared in Washington, D.C. After President Obama met with House Republicans…

Written by Steve Bell on Thursday June 2, 2011

Default Fears Start to Shake Investors

Many in the GOP might claim that a short-term default wouldn't have any negative effects, but there are signs that the debt fight has already begun to worry markets. In a vote that was not close, the House of Representatives rejected a “clean” debt ceiling increase Tuesday night, setting the stage …

Written by Fred Messner on Wednesday June 1, 2011

How Palin Taps the GOP's Economic Fears

For non-wealthy Republicans - as for non-wealthy Americans generally - the past half-decade has been a terrible time. This is part three in a series. Click here for part one and part two . Not every Republican lives in Greenwich and earns millions. For non-wealthy Republicans - as …

Written by David Frum on Tuesday May 31, 2011

Who Really Wins with Ryan's Budget?

Sarah Palin speaks to a radical mood: a mood of victimization and resentment. But Paul Ryan speaks to another radical mood: the radicalism felt by many affluent Americans. This is part two in a series. Click here for part 1 . Palin speaks to a radical mood in the country: a mood of …

Written by David Frum on Tuesday May 31, 2011

Wall Street's Getting Nervous About a Default

Who are you going to believe: the GOP Congressmen who say a short-term default won't matter or the financial professionals warning against that? “Don’t go to a butcher for back surgery.” My Air Force veteran father used to say that. It meant: don’t listen to folks about important matters unless …

Written by Steve Bell on Sunday May 29, 2011

Want Dems to Win in 2012? Then Default

Jim DeMint may try to place the blame for a potential default on Obama and Geithner, but voters will know to hold Republicans responsible in 2012. Senate Republicans are telling Treasury Secretary Geithner that a default will be his fault even though they are the ones refusing to raise the debt …

Written by Andrew Pavelyev on Friday May 27, 2011

Slow Growth Numbers Call for Smaller Cuts

If Republicans want to seize the upper hand after today's lackluster growth numbers, they will propose a series of more realistic and politically palatable cuts. The okay-but-not-great economic numbers (1.8% economic growth) posted yesterday offer talking points for both Democrats and Republicans. …

Written by Eli Lehrer on Thursday May 26, 2011

U.S. Can't Cut Its Way to Growth

Many countries have cut spending, reduced deficits and realized healthy economic growth. But there's a lot more that needs to happen for it to work in the U.S. In a recent blogpost debunking claims that reducing government spending always leads to a quick economic recovery, Frum Forum 's Noah …

Written by Eli Lehrer on Thursday May 26, 2011

GOP's New Line: Budget Cuts Bring Boom Times

Many in the GOP are convinced that immediate and significant spending cuts can cause significant economic growth. But does this claim hold up? The open seat in NY-26 has gone to the Democrats, yet some conservatives still argue that despite its political unpopularity the GOP budget needs to be …

Written by Noah Kristula-Green on Wednesday May 25, 2011

Don't Be Fooled: Default Will Be Painful

Talking heads and think tank fellows are claiming that paying off America’s debts without default will be painless, but their numbers just don't add up. Conservatives, whether they are think tank fellows or radio hosts, share the same talking point: paying off America’s debt’s without default will …

Written by Noah Kristula-Green on Thursday May 19, 2011

A Get Rich Slow Scheme

A cheap dollar is no fun for Americans, but as my latest column for The Week points out: it may bring us out of our recession. A cheap dollar is no fun for Americans, but as my latest column for The Week points out: it may bring us out of our recession. Work more. Save more. Export more. …

Written by David Frum on Wednesday May 18, 2011

The GOP's New Line: Defaults Don't Matter

As the GOP latches on to the false idea that a default is manageable, even the debts of the United States have become another tool of politics. Noah Kristula-Green makes the important point that Stanley Druckenmiller's weekend WSJ interview has blossomed in a matter of days into something like …

Written by David Frum on Wednesday May 18, 2011

Toomey Brushes Off Debt Default Danger

Senator Pat Toomey might not want to face a default, but he also thinks it wouldn't be the end of the world. Would markets feel the same way? Senator Pat Toomey claims that he doesn’t want the US to face a default, but he is definitely interested in the arguments made by conservative op-ed …

Written by Noah Kristula-Green on Wednesday May 18, 2011

Dump the Debt Ceiling

Congress shouldn’t increase the debt ceiling; instead it should just abolish it. The U.S. hit its debt ceiling this Monday. It’s time for Washington to stop the insanity and act responsibly. Congress shouldn’t increase the debt ceiling; instead it should just abolish it. Drive a stake through …

Written by Andrew Pavelyev on Monday May 16, 2011

With Huck Out, Will GOP Lose the Middle Class?

He had his political flaws, but Mike Huckabee also understood the economic concerns of the middle class. This Saturday, former Arkansas Governor Mike Huckabee announced that he would not run for the 2012 Republican party's nomination. As my latest column for CNN.com notes, for all his political …

Written by David Frum on Monday May 16, 2011

GOP Picks the Wrong Spending Fight

The GOP seems convinced inciting a debt ceiling crisis is the best way to restrain spending. But even a short increase in the limit can stave off a bigger crisis. One might note within many ostensibly conservative discussions about the debt ceiling a strain that comes far more from Leon Trotsky …

Written by Fred Bauer on Monday May 16, 2011

FroshUpdate: West for the West Wing?

Freshmen have been pushing the energy bills in the American Energy Initiative, but conservative economists tell FrumForum it will have little effect on gas prices in the next year. Meanwhile, freshman Rep. Martha Roby calls rising gas prices “the greatest threat to our economy”. Rick …

Written by Tim Mak on Monday May 16, 2011

No Deal in Sight as Debt Deadline Nears

As the U.S. hits its debt limit, it's time for Republicans to take the matter seriously. They can start by putting revenue expenditures on the negotiating table. The debt limit that the United States hit yesterday isn't a big deal yet but, by any reasonable accounting, it could be pretty soon. If …

Written by Eli Lehrer on Sunday May 15, 2011

Is Boehner Ready for the Budget Backlash?

Republicans may have signed up for the fight of a generation, without understanding how much is at stake - or how fierce the resistance is likely to be. Here's another bit from Speaker Boehner's Thursday speech to the Economic Club of New York that commands some attention: There's another …

Written by David Frum on Sunday May 15, 2011

Debt Default Means New Recession

Tim Geithner has taken heat for suggesting that a debt default could lead to a double dip recession, but unfortunately he's absolutely right. There's no doubt that Tim Geithner is right to say that a debt default would result in a double dip recession. If anything, Geithner understates the case: a …

Written by Eli Lehrer on Sunday May 15, 2011