June 30, 2011 • During President Obama news conference Wednesday, he urged lawmakers to act
quickly on a deficit reduction plan, and to approve an increase in the federal debt ceiling.
According to (pretty outdated) CBO data
on this question, that is in fact what happened, but as I and others (particularly Krugman) has endlessly stressed, our policy makers recently pivoted way too
quickly to
deficit reduction and that too has made it much harder to repair the damage from the housing bubble.