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Saturday, March 27, 2010

Paul Krugman illustrates once again why the deficit/debt isn't that big of a deal

One of the smartest economists in the world breaks down the debt/deficit again, what's he conclude? Once again those screaming bloody murder are politically motivated, and are trying to eat at Obama's economic policy.

"Many independent sources are moderately more pessimistic; they think that on current policies we’d be looking at a deficit of 5-6 percent of GDP. So that makes it more like a 3 or 4 percent of GDP adjustment.

That’s not, in economic terms, a huge number. We could raise taxes that much and still be one of the lowest-tax nations in the advanced world. Or we could save a significant share of that total by not being totally prepared for the day when Soviet tanks sweep across the North German plain."

Hmmm, where could the United States make cuts in it's budget? Let's see, no more Soviet Union, Obama just signed a nuclear arms reduction with Russia. The wars in Afghanistan and Iraq are counterinsurgency wars, you can't really utilize stealth bombers, or battle tanks in urban areas.

Come to think of it.... since the bad guys don't have air forces you really don't need stealth fighters either. China is a trading partner, we don't need to fight them. Are we missing an area where we could be making smart, necessary budget cuts?

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