Krugman: We "Brought The Budget Under Control And Nobody Noticed"
PAUL KRUGMAN: There's a remarkable document that almost nobody noticed that came out yesterday from the Congressional Budget Office about the budget and what it said is it's projecting a deficit of $845 billion this year, of which fully half is what they call automatic stabilizers. Low revenue because of depressed economy, unemployment benefits, which are high because of a depressed economy.
With a fully recovered economy, the budget deficit would be down to about $420 billion, which is, in fact, a level that is consistent with a stable debt position. They say that the adjusted budget deficit is back to what it was in 2006, back to what it was during the height of the housing bubble. So we have, in fact, we have already basically brought the budget under control and nobody noticed. (This Week, March 10, 2013)
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