Austerity and Deficits

What i find most interesting about this piece from Paul Krugman is that I’ve seen several news reports decrying the deal that was made as not cutting the deficit enough–and none of them pointed out the fact that simply going off the cliff would have cut the deficit more. That indeed, the whole negotiation was over how much to decrease the overall deficit reduction that going over the cliff would have caused (and yes, the details about where to take the money from, and still, in the end, going over the cliff would have reduced the deficit much more than any deal either side was proposing). So whether you agree with Krugman on policy or not, I think you have to agree that it is no wonder the public is confused; the politicians and media have done an abysmal job of explaining what the cliff is and what the negotiations are about.


About JP

We're two guys who met in college, in 1980. We've stayed in touch, and like to talk politics, current events, music and religion. JP is nore liberal than Sid, but not in every way. We figure that dialogue stimulates ideas, moderates perspective, and is in general friendly. These are things we need badly in these dangerous times. The blog name is taken from a song by Bruce Cockburn.
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