Even more fundamentally, it is terrible economics to view federal budget deficits as always and everywhere bad. Making good policy in the future will require that voters be educated on this front. Why not start now? After all, our failure as a society to understand the economics of deficits and debt greatly contributed to the destructive impact of the Great Recession of 2008–09. The stakes of allowing history to repeat itself are high enough that we should take the time to quickly recap the history of how costly irrational deficit-phobia has been....The conclusion can only be that the Democratic leadership intends to hobble their social proposals so as not to displease the donors. Or maybe they really are that stupid. In any case, they need to be turned out.
Economic Policy Institute
The bad economics of PAYGO swamp any strategic gain from adopting it
Josh Bivens, director of research at the Economic Policy Institute
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