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More On Jim Himes, David Walker and “No Labels”

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Paul Krugman:

…Where is the evidence that fear of future deficits — as opposed to fear of political chaos over the debt ceiling and all that — is depressing business spending? Where, indeed, is the evidence that out there in the real world of economic decision-making, long-term deficits worry anyone at all? How do you reconcile claims that it’s all about the fiscal outlook with record-low borrowing costs?

The truth is that this is all a self-indulgent fantasy…

What leads to this self-indulgence? In large part it is what Jon Chait calls the “repetitive drone of elite sentiment”, in which the usual suspects pat each other and themselves on the back, with never a skeptical question. Erskine Bowles and Alan Simpson will not appear on a Sunday talk show and get asked why the fiscal crisis they keep predicting hasn’t materialized. David Walker won’t be asked why, if the great danger is that at some point in the future we may be forced to cut benefits, it’s so important that we commit now to … cutting future benefits…

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