The headline of a WSJ article on the deficit told readers that: "deficit to hit all-time high." This is not true in any meaningful way. Measured in nominal dollars, the $1.6 trillion deficit is an all-time high, but measured as a share of GDP (the only meaningful measure) the deficit is about 11 percent of GDP. This leaves it much smaller than the deficits run during World War II which exceeded 20 percent of GDP. (Marketplace radio made the same error on Monday morning.)
The article reports that after falling as the economy recovers, the deficit is projected to rise again due to baby boomers collecting Social Security and Medicare. Actually, the main reason for the projected increase in the deficit at the end of the decade is rising health care costs which will get passed on in higher costs for Medicare, Medicaid and other government programs. If the United States health care system were as efficient as those in other countries, the U.S. would be expecting huge budget surpluses in future decades.
I’m writing to you today with a sense of urgency that I haven’t felt since I began my journalism career. As executive editor of The American Prospect, I’ve witnessed firsthand how independent journalism serves as a crucial bulwark against the erosion of our democratic institutions. Today, that role is more vital than ever. Can you step up today and show your support?
The winds of authoritarianism are blowing stronger. We’re seeing alarming signs of a coordinated effort to silence critical voices and undermine the very foundations that support progressive causes. As Bob Kuttner presciently wrote in our August 2024 issue, a weaponized IRS could attack the very foundations of the progressive movement. We need readers to step up and help us dig in for the long haul.
We’re falling behind in our spring fundraising campaign, and with so much at stake we can’t afford to come up short. If you value fearless, independent journalism that holds the powerful accountable and defends democracy, now is the time to step up. The American Prospect depends on reader support to stay in the fight. Pitch in today and help us close the gap. Please consider making a donation today.
–David Dayen, Executive Editor
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