Dollars & Sense on the budget deficit

As I was working on my term paper about the federal deficit, I came across this article on the Web site of the progressive magazine Dollars & Sense. I may or may not use it in my paper, but it's a good read, and author Marty Wolfson manages to take on some common misperceptions. In the current economic situation, in which ordinary people are still suffering, massive government spending would be very useful. But we're not likely to get it. Wolfson explains why:

The ideological opposition to government spending remains a major obstacle. There are those who see an increase in the role of government as something to be avoided at all costs—even if the cost is the jobs of the unemployed.

Even among those who are not subject to such ideological blinders, there is still a political argument that resonates strongly. The argument is that government spending to create jobs will create large budget deficits, which will have terrible consequences for the American people. Politicians, pundits, and other commentators—in a frenzied drumbeat of speeches, op-eds, and articles—have asserted that the most urgent priority now is to reduce the budget deficit.

It is important to note that this argument is focused on current policy, not just the long-term budgetary situation. There is room for debate about long-term budget deficits, but these are affected more by the explosive growth of health-care costs than by government discretionary spending to create jobs.

For more information, read the rest of the article.