"Deficit-cutting under the current circumstances is bad economics, according both to theory and to historical precedent. Austerity economics are palpably and tragically failing in Europe, yet the same types who urge austerity on Greece, Italy, Portugal, Spain, and even France — not to mention the non-Eurozone giant, Britain — are also urging it in broad consensus in America. And they are succeeding. Dedicated to their polite even-handedness, meanwhile, the media have tended to blame both sides and to assume unquestioningly that deficit reduction is required, rather than identifying the clear culprits responsible for sustaining our economic mess. These culprits are not evenly distributed across the political spectrum. In order of importance, they are:"
- The Tea Party Republicans who have been working for an economic policy driven by ideology and a hatred of most social policies.
- self-appointed “common sense” centrists like the powerful Campaign to Fix the Debt
- Third is the Congressional Budget Office. The CBO’s economics are utterly neoclassical, which means it is conservative, in that it almost always favors less government spending. Its projections generally assume that high budget deficits will crowd out private investment and slow economic growth.