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More Deficits

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Paul Krugman on the deficit hysteria:

The numbers don’t fit the scare story — a decade from now interest
payments will reach a level not seen since … 1992. And the market seems
unworried, since long-term rates remain low.

And the Tories and Labour are engaged in trench warfare on the same issue in the U.K, even though the argument has basically been resolved.

Why this argument continues to give equal time to both sides is a mystery - those on the Right simply cannot be taken seriously on economic issues any more. Their ideology has fallen flat on its face and they are desperately scrambling around pretending they didn't support the policies that ruined the economy. Their new found resolve to bring fiscal discipline to government is happening just at the time when huge injections of government cash are needed to prevent the economy from completely dissolving. Nevertheless, they are succeeding in scaring people into following their agenda, taking the lead (again) in destroying any progress we might have made.