This week, Congress is moving toward approval of an agreement on the largest spending cut in history to help begin to create a better environment for private-sector job growth.
While the president’s party still controls Washington, House Republicans have dragged a reluctant Senate and White House into taking this imperfect first step toward getting spending under control. The agreement will reduce government spending by $38.5 billion over the next few months — and by hundreds of billions of dollars in the coming decade.
This is real money. And as Stanford University economics professor John B. Taylor observed, “Reducing discretionary spending in 2011 … will help establish credibility and show that government can actually take needed actions, not just promise to take them.”
But the agreement is far from perfect, and we need to do much more if we’re serious about creating new jobs, fixing our spending-driven debt crisis, and ending the uncertainty that continues to plague our economy.