Chart of the Day
Posted at 11:15 a.m. on Sept. 18
– Derek Thompson charts the Congressional Budget Office’s forecasts of public debt from January 2007 (in yellow), January 2011 (in gray), and May 2013 (in blue), showing how hard it is to project the economic tides.
“Without warning, health care costs slowed down and Congress repeatedly flayed the discretionary budget for dubious reasons, and CBO’s debt projections fell, by many trillions of dollars.”
“Debt hawks are still asking Washington to direct its valuable focus to long-term debt rather than short-term crises… The hawkish arguments are unyielding, even as the underlying evidence is changing rapidly.”
Paul Krugman: “The point is not that we should completely ignore issues of fiscal responsibility. It is that we are nowhere near fiscal crisis; we aren’t even looking at anything like a fiscal crisis 15 or 20 years from now. So budget deficits, entitlement reform, and all that simply don’t deserve to be policy priorities, let alone dominate the national discussion the way they did for the past few years.”