This tweet caught my eye:
Use of the term “unprecedented” is becoming disturbingly common. Let’s review the past 5 years:
Unprecedented situation #1: In 2018 and 2019, I warned that the doubling of the budget deficit over four years was unprecedented (and reckless), for a period of peace and prosperity. Lots of pundits ignored these warnings, pointing to low interest rates.
Unprecedented situation #2: In 2020 and 2021, I warned that the huge size of the budget deficit was unprecedented (and reckless) for a period when we were not at war. Pundits pointed to the low interest rates and basically said, “don’t worry”. (Some spending was justified by Covid, but much of it was not.)
Unprecedented situation #3: And now we have another unprecedented situation, the deficit doubling in just one year (to a very high level) during a period of peace and prosperity.
But this time I’m seeing a flurry of article in the mainstream press, concerned that our debt situation is unsustainable. They are correct, but where were they in 2019?
PS. I suspect our candidates will ignore the budget deficit in the upcoming presidential campaign. But (with apologies to Leon Trotsky), politicians may not be interested in budget deficits, but budget deficits are interested in politicians.
