"Nobody Cares About the Deficit" by Paul Krugman at the NY Times

Nobody Cares About the Deficit

by Paul Krugman at the NY Times

http://krugman.blogs.nytimes.com/2012/08/23/nobody-cares-about-the-deficit/

"SNIP............................................

What the CBO says is that allowing the Bush tax cuts to expire and the sequester to kick in would hit the economy hard next year — because it would lead to a sharp fall in the deficit while the economy is still depressed. It’s pure Keynesianism, the same point that all of us anti-austerians have been making for years. If the right was at all consistent, it would be denouncing the CBO report for failing to take into account the impact of a lower deficit in deterring the invisible bond vigilantes and encouraging the confidence fairy.

But whaddya know: suddenly the deficit is not an issue.

Of course, it has been obvious all along that the whole deficit-hawk pose was insincere, that it was all about using the deficit as a club with which to smash the social safety net. But now we have a graphic demonstration.

..............................................SNIP"