Who's Spinning

Union Chief Richard Trumpka disputes the idea that there's a problem with deficit spending, saying it's an invention of the GOP Spin Machine. Trumpka is backed up on this by Left Wing Spin Machine economists like Paul Krugman.

The point is that running big deficits in the face of the worst economic slump since the 1930s is actually the right thing to do. If anything, deficits should be bigger than they are because the government should be doing more than it is to create jobs.

Many economists take a much calmer view of budget deficits than anything you’ll see on TV. Nor do investors seem unduly concerned: U.S. government bonds continue to find ready buyers, even at historically low interest rates. The long-run budget outlook is problematic, but short-term deficits aren’t — and even the long-term outlook is much less frightening than the public is being led to believe.

Contradicting the Trumpka/Krugman stance are people like Treasury Secretary Tim Geithner, who argues that Bush tax cuts should end for the highest earners in order to attack the deficit.

Geithner said on July 25 that the expiring tax cuts would only affect 2 percent to 3 percent of Americans, and therefore would help shrink the deficit without hurting the recovery.

“We need to make sure we can show the world that we’re willing, as a country, now to start to make some progress bringing down our long, our long-term deficits,” Geithner said in an interview on ABC. “I do not believe it would have a negative effect on growth.”

So, who is talking ragtime?