The politics of debt: Seeing red

America’s debt is Barack Obama’s biggest weakness “PAYING for what you spend is basic common sense. Perhaps that’s why, here in Washington, it’s been so elusive,” said Barack Obama on June 9th. He was urging Congress to pass a new “pay-as-you-go” (PAYGO) plan that would oblige it to pay for new spending either by raising taxes or by cutting outlays. By following the same principles that guide “responsible families managing a budget”, he said, Americans could dig the country out of the “very deep hole” that “the reckless fiscal policies of the past have left us in”. Republicans marvel at his skill in stealing their clothes. Democrats retort that, under George Bush, Republicans left their clothes unguarded while they cavorted in a hot tub of borrowed cash. Sure, they talked about fiscal responsibility. But instead of choosing between tax cuts, wars and social spending, they chose all three—and left the bill for ... (link)