There is much hysteria these days about government deficits. There also are sensible economists who are seeking to dampened that hysteria. Among them is James Galbraith - you can read his most recent take on the "crisis"
here at
The Nation. The approximate punch line?
". . . the deficit phobia of Wall Street, the press, some economists and practically all politicians is one of the deepest dangers that we face. It's not just the old and the sick who are threatened; we all are. To cut current deficits without first rebuilding the economic engine of the private credit system is a sure path to stagnation, to a double-dip recession--even to a second Great Depression. To focus obsessively on cutting future deficits is also a path that will obstruct, not assist, what we need to do to re-establish strong growth and high employment."
The real political problem, of course, is that the Obama administration is listening only with its right ear.
