Deficit Deception

The lead article in today’s New York Times is titled, “U.S. Deficit Rises to $1.4 Trillion, Biggest Since ’45.” It notes that our deficit for the past fiscal year (ending September 30) represents 10 percent of our economy compared to 21.5 percent after World War II.

The article notes that TARP and the two-year stimulus program account for only a quarter of the deficit, and one of the main culprits was the high jobless rate, a major factor in decreasing revenues. It also points out that President Obama was faced with a severe recession and financial crisis when he assumed office, and that dictated his need to provide large infusions of cash.

In my opinion, this topic distracts from the real problems facing this Administration, namely the need to get Americans back to work. Many people are suffering despite the relative boom on Wall Street, and they need immediate relief on humanitarian grounds. Of course, this will add even more to the deficit, but only in the short term.

President Obama has done what he had to do, and many have suggested that the stimulus was too small. In fact, some are suggesting it would be disastrous to try to balance the budget when the economy is still recovering.

Of course, Republicans will try to use this statistic to rally opposition against the health care bill, but this tactic smacks of political opportunism more than anything else.