The impact of our massive deficit on uncertainty in the business community is significant and a contributing tour dismal economic growth rate. Social unrest in Greece, where people have come to expect the government support, combined with concerns about our nation being similarly unable to satisfy its ever increasing debt, have caused the deficit to loom very large in our collective psyche. If we are to return our nation to prosperity, we need to both live within our means and reduce our outstanding obligations. The failure to do so endangers our freedom, threatens our national security and betrays future generations.
Unfortunately, the deficit is an even more serious problem than most people currently believe. In this morning’s Wall Street Journal, former Federal Reserve governor Lawrence Lindsey has an op-ed entitled “The Deficit Is Worse Than We Think.” . He focuses on how currently low interest rates, the Obama Administration’s overly optimistic growth forecasts and the inaccuracies of the long term cost estimates for ObamaCare are masking the real size of the threat the deficit poses. It is well worth a read. We need to support those in Congress who are taking the political risk of facing the deficit now. The economic risks of pretending we can maintain our current course are untenable.