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The WP Asks: Is The Deficit Losing Its Urgency?

From the Washington Post:

Is the deficit losing its urgency?

By Karen Tumulty and Lori Montgomery | February 13, 2013

President Obama’s State of the Union address laid down the marker for a new, activist phase of his presidency — one in which he will not allow concerns about the deficit to dictate the major policy decisions that confront him…

As he begins his second term, Obama is convinced that he has gained the upper hand on fiscal issues, in part because the latest projections show the deficit is coming down from its record levels.

Which is worse? If he really believes this, or if he is just lying to get his way? Either way, the country would seem to be in danger.

Obama also argued in his speech Tuesday night that continuing to focus so intensely on reducing red ink could hamper the country’s ability to create “a growing economy that creates good, middle-class jobs — that must be the North Star that guides our efforts.” …

Though few of the proposals he mentioned in the speech were new, the president believes that his reelection has given him new momentum to pursue them, aides said.

In other words, Obama’s re-election means we no longer have to worry about the deficit. Isn’t that handy?

“The politics have shifted. It was intentional,” said White House senior adviser Dan Pfeiffer. “The president put these issues at the forefront of the campaign for the purpose of shifting the politics.” …

There has been no shift. Obama has never worried about the deficit even for a nanosecond. He has always sought more government spending, except for the military.

Lately, even some deficit hawks have begun contemplating the possibility that the budget deals of the past two years may have pretty much solved the short-term deficit problem.

Name one.

The latest Congressional Budget Office forecast, released last week, shows that this year’s deficit will come in under $1 trillion — the first time that’s happened in Obama’s presidency.

And we know the CBO can always be trusted. But, also, how is that a surprise or even news? We have just had a slew of massive tax hikes.

And if the sequester takes effect, the deficit is on track to keep falling through 2015, according to CBO.

And that is a big ‘if.’ But even if the sequester does happen and it last a full ten years, all it will do is slow the growth of the deficit. But the deficit is still going to grow.

Though it would start rising slowly again thereafter, the amount of debt held by the public would be fairly stable as a percentage of the economy, hovering between 73 percent and 77 percent for the rest of the decade.

And never mind that Moody’s and Standard & Poor will downgrade America’s credit rating again for numbers like this. Which will make the cost of borrowing skyrocket.

Besides, these are the bluest of blue sky projections. But if we have a recession or a war or any disruption, things will be far worse.

Stabilization — stopping the rapid rise in government borrowing that accompanied the recession — has long been policymakers’ primary goal…

But others aren’t so sure that’s wise. The left-leaning Center on Budget and Policy Priorities this week argued that stabilizing for the next decade would not only “represent an important accomplishment,” but buy time for policymakers to sort out their next steps at a time of great uncertainty…

Sure, shrinking the increase in borrowing is never a good thing. Everyone knows that the best thing for any country to do is borrow more and more money. Especially, from its enemies.

This article was posted by Steve on Thursday, February 14th, 2013. Comments are currently closed.

2 Responses to “The WP Asks: Is The Deficit Losing Its Urgency?”

  1. captstubby says:

    translation from Obama/ english dictionary:
    i broke it,
    i can’t fix it,
    and what does it matter now anyway?

    • mr_bill says:

      That seems to be the second-term mantra of this regime for anything they can’t explain: “What does it matter now anyway?”

      Constitution, Benghazi, Fast & Furious, Jack Lew’s Cayman investments, crippling debt, assault on Natural Rights, etc….and the attitude of nerobama and his associates is “meh, what does it matter now anyway?”

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