Deficit hysteria grips Washington
Obsolete thinking no longer fits facts
By Darrell Delamaide
Feb. 16, 2011
Deficit hysteria is rising to fever pitch in Washington as the political jockeying over the budget begins in earnest.
“Fiscal nightmare,” “buried under a mountain of debt,” “awash in red ink” – these are some of the colorful phrases being bandied about by politicians, pundits and even journalists ostensibly reporting facts. Most of them are winging it on a single undergraduate course in economics, if that, but they know they’re right because everybody agrees.
Yet, if you look out the window, you don’t see any red ink or mountains of debt. The only nightmare is unemployment continuing near 10% and ongoing waves of foreclosures – neither of which is attributable to the federal deficit and neither of which will be fixed by budget cuts.