(Economists) Survey: Deficits (are) biggest threat (to U.S.)

Economists say the budget and trade gap are more of a problem for the economy than terrorism.

March 21, 2005: 7:11 AM EST

WASHINGTON (Reuters) - The budget deficit has overtaken terrorism as the greatest short-term risk to the U.S. economy, and concern about the current account gap is rising, a survey of American businesses released Monday showed.

In the survey of 172 members of the National Association For Business Economics, 27 percent said the deficit or government spending was the largest short-term threat to the economy, up from 23 percent who thought so in August.

Terrorism dropped to second on the list, with 24 percent saying it was the biggest threat, down from 40 percent. Those most concerned about the deficit in the current account -- the largest measure of U.S. trade with other nations -- tripled, to 15 percent from 5 percent in August.

"Longer term, the costs related to the aging of the population dominate the challenges to sustaining economic growth. However, the panel is doubtful that this Congress will pass needed Social Security reforms," said David Wyss, chief economist at Standard & Poor's, who conducted the analysis for the report.

(more at link)

<http://money.cnn.com/2005/03/21/news/economy/economy_survey.reut/index.htm>

Of course,

1) 27% is hardly an overwhelming majority. Or a majority.

2) "Business Economists" != "Economists". These are the same guys that argue for Supply-side economics with a straight face.

I honestly don't understand the debate about the deficit. Who on DU is willing to argue that FDR was wrong for running a deficit?

...place on the list, with 24 percent!

Economists say the budget and trade gap are more of a problem for the economy than terrorism.

And you know who get hurt more in an Economic collapse? Rich People.

And What happens when Rich people have their Money threatened?

Action. Arms get twisted, Bad policy starts to change.

Maybe I'm letting a little bit of optimism shine through my recent dark clouds of pessimism, but I think this could be the beginning of the end.

what else would be expected of FDR?
Different times, different circumstances. No argument
here, move on folks.

"don't listen to the fancy pants intellectual economists... remember, Reagan proved that deficits don't matter."