Deficit Had to Get Worse to Start Looking Better
This article is for subscribers only.
Aug. 1 (Bloomberg) -- The U.S. budget deficit isplummeting. The Treasury plans to start cutting back on its debtissuance. The deficit scolds have gone underground. Austerity isyesterday’s obsession. The president is exploiting the improvedfiscal outlook to push for new spending.
All those statements are true. However, the recentimprovement in the debt and deficit as a share of the economydoes nothing to alleviate the nation’s long-term structuralchallenges. The what-me-worry crowd needs to listen up.