By concentrating principally on short-run aggregate demand, the book understated the importance of the causes of long-run economic growth.
Backing this promise is a welfare state built on the Soviet model widely understood as a formula for long-run economic suicide.
Where the candidates' positions are more clearly articulated, Mr Obama scores better on nearly every issue: promoting fiscal discipline, energy policy, reducing the number of people without health insurance, controlling health-care costs, reforming financial regulation and boosting long-run economic growth.
President Obama had the opportunity Thursday night to propose short- and long-run steps to promote economic growth.
Federal spending is projected to consume about 23.6 percent of GDP, substantially higher than the long-run average of 19.8 percent of economic output.
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As Bob reminds us with colorful vignettes of 18th and 19th century living, nothing, but nothing, is more important to economic well being than long-run growth.
While Mr. Brown deserves credit for some earlier spending cuts to reduce a large inherited budget shortfall, the budget fails to address long-run structural problems, counting on a cyclical economic recovery and stock bubble for a bailout until the next self-inflicted crisis.
If fiscal policy becomes focused on long-run considerations (e.g. deficit reduction) economic conditions will improve over time.
Moreover, a host of economic research has shown there is no long-run (and perhaps no short-run) tradeoff between inflation and unemployment.
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Lord Lawson aimed to rid economic policy of the notion that there was a long-run trade-off between employment and inflation.
According to the CBO, once economic recovery occurs, federal revenues will revert to their long-run average of 18% of GDP under current tax rates.
Similarly, a tax cut "pays for itself" if the tax cut stimulates enough extra economic growth over the long run to compensate for any short-term revenue reduction that might result.
It reflects the long-run success of China, the impact of social programmes in Latin America and recent economic growth in Africa.
Short-sighted budget-rationing measures should be reversed and the profound social, demographic and economic advantages to be gained in the long run from active and humane health-care policy must be recognised.
As the late, great economist Julian Simon demonstrated (both with clear economic logic and an unassailable mountain of data), there is a long-run tendency for standards of living to improve and for material scarcity to relax as a constraint rather than tighten.
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The idea is that setting a structural budget target will make budget writers less short-sighted: During an economic boom when actual GDP might be running above the economy's long-run potential the government's budget position will look deceptively strong, reflecting the fact that tax revenue is high and government spending on things like unemployment insurance is low.
The National Development and Reform Commission, the top economic planning agency, is in charge of long-maturity bonds typically issued by major state-run enterprises, while the securities regulator runs a separate exchange-based bond market for listed firms.
But the popular desire to preserve the physical remains of the wall has run up against the economic realities of the cash-strapped city's need to develop long-barren areas of the capital, including the so-called death strip where many people trying to flee East Germany lost their livesdied.
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