Committee for a Responsible Federal Budget

Weekend Editorial Roundup

Nov 30, 2009 | Economics| Budget Process

Here are the highlights from this weekend’s editorials on fiscal and budget policy:

  • The Wall Street Journal calls the pharmaceutical industry foolish for believing politicians will keep promises they made to the industry in exchange for support on health care reform. The Journal says lawmakers in the House and Senate will probably abandon promises of no price controls or imports of foreign drugs.
  • The New York Times laments the continued weak housing market, noting a Commerce Department report that new-home construction fell sharply in October. Since efforts to stimulate the housing market are failing, The Times argues the government should focus more stimulus funds on job creation instead.
  • Although the $700 billion TARP fund was more than needed, The Washington Post encourages Treasury Secretary Geithner to resist Republican calls to end the fund early. The TARP should continue until its scheduled expiration next year in case any other financial institutions need assistance, The Post says.
  • The Wall Street Journal condemns the Labor Department for ending a 2008 rule that allowed financial advisors managing 401(k) programs to also advise employees on their investments. The benefits employees gain from financial advice outweigh any concerns over conflict of interest, The Journal argues.

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