The Dwindling Deficit - By PAUL KRUGMAN NYTimes.comQuicklink submitted by Susan Lee Schwartz Permalink
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|' The budget deficit isn't our biggest problem, by a long shot. Furthermore, it's a problem that is already, to a large degree, solved. The medium-term budget outlook isn't great, but it's not terrible either -- and the long-term outlook gets much more attention than it should..The point is that the case for urgent action now to reduce spending decades in the future is far weaker than conventional rhetoric might lead you to suspect. And, no, it's nothing like the case for urgent action on climate change.' The Federal deficit 'is mainly the result of a depressed economy -- and you're actually supposed to run deficits in a depressed economy to help support overall demand. The deficit will come down as the economy recovers: Revenue will rise while some categories of spending, such as unemployment benefits, will fall. Indeed, that's already happening.|
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