Local Economist: There is No Debt Crisis - NEWS10 ABC: Albany, New York News, Weather, Sports

Local Economist: There is No Debt Crisis

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ALBANY, N.Y. - A local Economist says the Sequester panic is unfounded. He believes there are other problems that need to be addressed, and the debt crisis is not really a crisis right now.

Senator Charles Schumer says he is fighting to stop the automatic cuts and is blaming other members of Congress for not being able to agree on a plan.

"I don't think our current level of debt is going to prove to be unsustainable at all," says Economics Professor at Union College, Brad Lewis.

As a threat of automatic federal spending cuts looms over the heads of Americans, Lewis says cutting is not the answer, and the national debt crisis is not really the problem.

"I don't think there is a debt crisis," says Lewis.

Lewis says lawmakers have blamed the national debt crisis for the nations financial problems because they don't understand how to fix the real problems.

"I think we have a crisis in the sense that we continue to have output lagging and basically we haven't figured out the combination of policies to make that better," says Lewis.

New York Senator Charles Schumer admits the real failure is not passing a deficit reduction plan in November.

"This shouldn't of taken so long but when these 100 people hold out in the past the leadership in the house has given into them. We shouldn't do that anymore," says Senator Schumer.

Schumer says he is presenting a bill on the Senate floor Thursday that would replace the Sequester. It includes a different set of cuts and closing tax loopholes. Lewis says although the Sequester would impact jobs in a negative way it wouldn't be the calamity many are warning.

"Getting there is not going to be made better by trying to cut back Government expenditures and thereby cut back people's incomes." "We ought to look more carefully at what we can do to put people back to work," says Lewis.

Senator Schumer says if that replacement bill or others proposed on the floor Thursday are not passed, the automatic cuts will take effect, but ultimately a new plan once met could still take its place.

 

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