Paul Krugman: That Terrible Trillion

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At www.nytimes.com

America does have a long-run budget problem, thanks to our aging population and the rising cost of health care. However, the current deficit has nothing to do with that problem, and says nothing at all about the sustainability of our social insurance programs. Instead, it mainly reflects the depressed state of the economy -- a depression that would be made even worse by attempts to shrink the deficit rapidly.

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At www.nytimes.com

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