Shrinking Fast

05.14.13

The Death of Deficit Scare-Mongering, Please

The CBO released new deficit projections, and it's down to $645 billion for this fiscal year, about $200 billion lower than earlier estimates. Simpson-Bowles wanted the deficit to be down to 2.3 percent of GDP by 2015. This would be 2.1 percent. Deficit scare-mongers, please go home now, okay?

The incredibly shrinking deficit is due to more tax revenues and more payouts from Fannie and Freddie--you know, conservatives, the entities you wanted to see closed down. But all it really means is the economy is getting better, in spite of the one political party that is trying to sabotage it.

Yglesias:

...there's really no need to panic or think that there has to be a grand bargain. What we need are more measures to reduce the cost of health care and more measures to boost economic growth.

I wish to G-d Obama would get out there and explain this to the American people. Give a big and dramatic Oval Office primetime talk. (Why does he never do those? The one he did, on the BP spill, was awful.) He won't change any Republican minds or silence the hen-clucking deficit scolds inside the Beltway, but he can start building long-term support for sane fiscal policy among the people who actually elect politicians.