"Immediately slashing government spending, as Ryan has proposed, is not a game or a joke—it’s economically irresponsible budget policy that has backfired across much of Europeand would seriously aggravate un- and underemployment. And as proven by the Budget for All, racing down the austerity path isn’t required for a fiscally responsible budget. The CPC budget would reach the same debt level as the Ryan budget without jeopardizing the economic recovery.
Fiscal responsibility demands sound economic stewardship, which means addressing the jobs crisis and closing the gap between potential output and actual GDP (the economy is currently running $883 billion—or 5.4 percent—below potential). While a large output gap persists, government spending cuts will have a particularly adverse impact on aggregate demand and fiscal sustainability will remain elusive."
