The Washington Post complained in a front page article that the Presidential candidates have not adjusted their tax and spending plans to accommodate the new fiscal realities implied by the bailouts. The article calls for them to advocate spending cuts and/or tax increases.
While this reflects the Post's editorial position, it is not clear that it reflects the fiscal and economic reality. At this point, neither the Post or anyone else knows how much a bailout will cost. It is possible that it will be structured so that most of the burden will be placed on the banks.
The Post also doesn't know how severe the current recession will be. There are few economists who would advocate cutting spending or raising taxes in the middle of a serious recession.
In short, this article is reflecting the editorial perspective of the Post, not economic or fiscal necessities.
If you enjoyed this article, please consider making a tax-deductible donation today. For over 30 years, The American Prospect has delivered independent reporting that exposes corporate power, investigates political corruption, and analyzes threats to our democracy. Unlike many media outlets, we’re not owned by billionaires or corporations—we’re powered by readers like you.
Today’s independent journalism faces unprecedented challenges. Your support makes our reporting possible and keeps our work free and accessible to all. Whether it’s $5 or $50, every contribution helps sustain our nonprofit newsroom.
Join our community of supporters and make a donation today to help keep independent journalism thriving.
Copyright 2025 | The American Prospect, Inc. | All Rights Reserved
