budget deficits

The Krugman Equation and Ending Political Theater To Save A Nation's Economy

Paul Krugman's OpEd in The New York Times yesterday, titled "Willie Sutton Wept," makes a few very important points for anyone who's truly interested in learning about the factors affecting our current budget 'crunch' and the ongoing debates on what to cut. (Read it here.) He makes three points about the current "budget debate" right off the bat, summarized in my bullet list below:

  1. It's essentially fraudulent
  2. Self-proclaimed deficit "hawks" ~aren't~
  3. President Obama deserves a lot more credit for fiscal responsibility than he's been getting

Most of this boils down to the reality that the current budget "crisis" is ignoring the realities of what is impacting the economy the most, while the kabuki theater that the GOP is performing (and not performing alone) in the Potemkin village of our nation's capital isn't just for show -- it's also damaging our meager recovery. Krugman reiterates what we've already seen from looking at the CBO's numbers and from additional sources -- that the core costs which will rise sharply over the next few years will be from health insurance programs, not Social Security. And the lack of revenues from the additional taxes that we lost due to the tax cuts are making the whole situation much worse.