INFLATION LOOMS: O’S DEFICIT DILEMMA at DickMorris.com
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INFLATION LOOMS: O’S DEFICIT DILEMMA
By Dick Morris And Eileen McGann 06.11.2009
Published in the New York Post on June 11, 2009
It’s increasingly looking like President Obama may be sunk by his own deficit.
Yes, the recession started under George W. Bush — and voters will still blame him for unemployment and related woes. But rising interest rates and inflation are the coming fears — and Americans will increasingly see Obama’s big-spending ways as the cause.
Deficit spending has always been Americans’ bete noir; the gospel of balanced budgets is deeply ingrained in our political and economic psyche. Through all the Keynesian experiments of the ’60s and ’70s, voters remained committed to a balanced budget. They worried as deficits rose in the Reagan years — then calmed as the economy turned up.
But when the news turned bad under the first President George Bush, they blamed the deficit — the issue was a major source of Ross Perot’s appeal in the 1992 election. And when President Bill Clinton (and a Republican Congress) finally balanced the budget, the economy bloomed — reinforcing public beliefs about the dangers of deficits.