...the sudden outbreak of deficit hysteria brings back memories of the groupthink that took hold during the run-up to the Iraq war. Now, as then, dubious allegations, not backed by hard evidence, are being reported as if they have been established beyond a shadow of a doubt. Now, as then, much of the political and media establishments have bought into the notion that we must take drastic action quickly, even though there hasn’t been any new information to justify this sudden urgency. Now, as then, those who challenge the prevailing narrative, no matter how strong their case and no matter how solid their background, are being marginalized.
And fear-mongering on the deficit may end up doing as much harm as the fear-mongering on weapons of mass destruction.
Even the White House has succumbed to deficit hysteria. The whole "Americans are tightening their belts, and so should the government" is so ridiculous -- unless, that is, it's merely a political feint and not a serious policy initiative. Which case, fine. I'm more concerned with sustaining the recovery, and the way to screw the pooch is to suddenly pull back on spending.