The NYT rightly criticizes Senator McCain for putting out a target of balancing the budget in 2013 while proposing nothing but tax cuts. It then presents the list of items that will be needed to set the economy right.
The one obviously crucial item that is missing from this list is a lower dollar. The United States is running a current account deficit that is equal to 5 percent of GDP. This logically implies means that the public and private sector must together be dissaving (i.e. borrowing) by an amount equal to 5 percent of GDP. While this can be reasonable for a rapidly growing country like China or India, it is not a sustainable position for a rich country with a slow growing labor force like the United States. The only plausible mechanism for adjustment for the current account deficit is a lower value of the dollar.
It is understandable that politicians would be reluctant to call for a weak dollar. But a newspaper that purports to be responding to the real needs of the country should have the courage to discuss the issue more seriously.
There's too much at stake this November for us to quit. As we navigate another presidential election year, thoughtful independent journalism is more important than ever. We're committed to bringing you the latest news on what's really happening across the country this election season, shining a light on the stories corporate media overlooks and keeping the public informed about how power really works in America.
Quality reporting doesn't come for free, and we don't have corporate backers to rely on to fund our work. Everything we do is thanks to our incredible community of readers, who chip in a few dollars at a time to make what we do possible. This month, we're trying to raise $50,000 to help fuel our election coverage, and a generous donor has agreed to match all online donations. Any amount you give will help us deliver the high-quality coverage you expect from us this election.
