That is what readers would conclude from an article that told readers in the first sentence that "The U.S. government is on course for an unprecedented borrowing binge in coming months that could constrain President-elect Barack Obama's economic agenda." Those who read beyond the first sentence would learn that, "few economists believe the Treasury will be constrained in the next year in its ability to manage its rising borrowing needs or in advancing another fiscal stimulus program." The real problem, according to the experts cited in the article, stems from long-term projections of rising costs, which are driven primarily by projections of rising health care costs. The experts quoted in the article do not identify the immediate costs associated with the bank bailout bill or a stimulus package as being a major problem, as the article implies. [NPR doesn't either -- their Morning Edition segment repeated this same sort of nonsense.]
--Dean Baker
