No. You're exactly correct. Wrote a comment, directly related, on Google+ the other day in this thread: https://plus.google.com/107033731246200681024/posts/LHVV

No. You're exactly correct. Wrote a comment, directly related, on Google+ the other day in this thread: https://plus.google.com/107033731246200681024/posts/LHVVz5e3irj https://plus.google.com/107033731246200681024/posts/LHVVz5e3... Here it is (can't figure out how to link directly to a comment): -------------------------------------------------------------- I sort of blame this on shoddy journalism. There is actually broad bi-partisan consensus from economists and business on what policy steps need to be taken. There is an important ratio that is largely being ignored: Debt-to-GDP ~ This is a fundamental measurement for determining credit risk. ~ Economists agree this ratio will grow too high in the future. ~ Economists agree we must spark GDP growth in the present. ~ There are two ways to improve this ratio: (i) Shrink the debt (cut spending &/or raise taxes) (ii) Grow GDP (invest in economy &/or cut redtape for business) Both long and short-term concerns can be addressed by investing & tax breaks now, and legislating cuts & revenue for later. The question is how these should be balanced, but they will all help. Planet Money probably does a better job of explaining sovereign debt to GDP ratios in this recent podcast: http://www.npr.org/blogs/money/2011/07/20/138518262/the-tuesday-podcast-how-much-debt-is-too-much http://www.npr.org/blogs/money/2011/07/20/138518262/the-tues...