Chart of the Day
Posted at 1 p.m. on Dec. 31, 2012
– Paul Krugman points to this chart to argue that the large budget deficits over the past few years are a result of the economic downturn, rather than a fundamental problem requiring higher taxes and lower spending.
“Here’s another chart, showing the primary federal balance — that is, not counting interest payments — since 1972… It’s hard to look at that chart and not conclude that the slump is the principal cause of the deficit… So, the whole deficit panic is fundamentally misplaced.”
