Is California the New Sign of Deficits Down?

Front page news today and yesterday of Governor Jerry Brown’s announcement of a budget in which there is no deficit.

It’s the first time since 2007 that leaders at the Capitol haven’t had a deficit to contend with and the first time since the late 1990s that the outlook over future years shows surpluses instead of deficits.

 

Paul Krugman takes note and slams the deficit scolds as he calls them:

 the deficit scolds will of course go wild. They have staked their careers on crusading against supposedly intractable deficits, and they have their hearts (and more important, their wallets) set on exploiting the alleged fiscal crisis to dismantle social insurance programs. Good news will be a blow to everything they want, and will be furiously and vigorously denied.

But once again: deficits are receding as an issue before our eyes.

Bonnie Kavoussi at Huffington Post, picks up an earlier Krugman post to expand the theme:

“Reasonable projections do not, repeat do not, show anything resembling the runaway deficit crisis that is a staple of almost everything you hear, including supposedly objective news reporting,”

showing a Center on Budget and Policy Priorities graph.

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