It’s Almost Time to Boost the Economy. Almost.

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Ben Bernanke told Congress today that the long-term deficit is indeed a problem, but it’s a problem for the long term. The best way to address it is to combine future budget tightening with present-day budget loosening, which will boost the economy and produce lower deficits in future years:

Bernanke raised concerns that a sharp, immediate push to reduce the deficit could harm the recovery in the upcoming months. In January 2013, he pointed out, the Bush tax cuts will expire, and the major spending reductions triggered by the Budget Control Act will take effect, absent any further action by Congress. As a result, “there will be sharp change in fiscal stance of the federal government. Without compensating action, it would indeed slow the recovery,” Bernanke told the committee members.

However, Sen. Pete Sessions (R-Ala.), the highest-ranking Republican on the committee, pressed Bernanke to answer whether the country’s current deficit was itself holding back the recovery and discouraging key market players. “They’re not reacting to the current level of debt. What they’re attentive to is the process,” Bernanke said, pointing to the political dysfunction that led to the Standard & Poor’s downgrade of the US credit rating last year.

Roger that. But it’s still a little too early, I think. If Congress takes action right now, it risks having an effect this year, thus helping President Obama. Better to wait until summer, when a sudden conversion to Keynesian pump priming will be timed perfectly to help the economy in early 2013, when a Republican might inhabit the Oval Office. Timing is everything in politics, after all.

HERE ARE THE FACTS:

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ONE MORE QUICK THING:

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As we wrote over the summer, traffic has been down at Mother Jones and a lot of sites with many people thinking news is less important now that Donald Trump is no longer president. But if you're reading this, you're not one of those people, and we're hoping we can rally support from folks like you who really get why our reporting matters right now. And that's how it's always worked: For 45 years now, a relatively small group of readers (compared to everyone we reach) who pitch in from time to time has allowed Mother Jones to do the type of journalism the moment demands and keep it free for everyone else.

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