Krugman: The Deficits Saved The World. But Then, It's Only A Problem When Democrats Do The Spending.

Ever notice the deficits are only a problem when Democrats spend to help the rest of us? Krugman explains why the deficit isn't the huge problem Re

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Ever notice the deficits are only a problem when Democrats spend to help the rest of us?

Krugman explains why the deficit isn't the huge problem Republicans always say it is (but only when there's a Democratic president, of course):

So is there anything to worry about? Yes, but the dangers are political, not economic.

As I’ve said, those 10-year projections aren’t as bad as you may have heard. Over the really long term, however, the U.S. government will have big problems unless it makes some major changes. In particular, it has to rein in the growth of Medicare and Medicaid spending.

That shouldn’t be hard in the context of overall health care reform. After all, America spends far more on health care than other advanced countries, without better results, so we should be able to make our system more cost-efficient.

But that won’t happen, of course, if even the most modest attempts to improve the system are successfully demagogued — by conservatives! — as efforts to “pull the plug on grandma.”

So don’t fret about this year’s deficit; we actually need to run up federal debt right now and need to keep doing it until the economy is on a solid path to recovery. And the extra debt should be manageable. If we face a potential problem, it’s not because the economy can’t handle the extra debt. Instead, it’s the politics, stupid.

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