Pending Fiscal Crisis Created to Advance Agenda To Cut Important Services

Economist Dean Baker: Deficit Hawks Creating Sense To Advance Their Agenda To Cut SS And Medicare

Economist Dean BakerCenter for Economic and Policy research economist Dean Baker says despite fears of a panic recession if a “fiscal cliff” deal isn’t reached by January 1, the actual effect on consumption in the U.S. economy is near zero. He says that’s because all the dire predictions about a possible recession and other adverse economic impacts if Congress and the president fail to reach a deal assume that the budget cuts and tax increases would remain in effect for the entire year. Baker says a more realistic scenario is that a deal will be reached in the New Year, averting a year-long impact. Baker says the deficit hawks are promoting a sense of crisis because it serves their agenda – an excellent opportunity in their eyes to cut Social Security and Medicare. Baker says the U.S. can afford to keep Social Security and Medicare intact without cutting. Just eliminating the income cap on Social Security taxes would fully eliminate any shortfall for 75 years. Medicare costs, he says, are driven by high health care costs, not the aging of the population. If U.S. health cre costs could be brought into line with other countries the U.S. would not face long-term deficit problems. 12/4/2012: By Doug Cunningham (Workers Independent News)

Listen to Fox & Friends interview: Economic Policy Researcher Dean Baker Explains the Reasons Social Security and Medicare Are Really Under Attack
From the November 3 edition of Sirius XM's Media Matters Radio:

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