Paul Krugman warns against what he sees as a new version of "voodoo economics" that Republicans plan to codify in the House: "The belief that deficits created by tax cuts just don't matter." Jon Kyl and crew think that any tax cut is a good tax cut, no matter the consequences for the budget. Somehow, it will all work out with spending cuts, even though Social Security, Medicare, and defense are off the table. This is just "magical thinking," writes Krugman in the New York Times.
He worries that our future can be seen in Nassau County, which is now in a fiscal mess thanks to this kind of policy put in place by a Tea Partying county executive. It "shows how easily responsible government can collapse in this country, now that one of our major parties believes in budget magic. All it takes is disgruntled voters who don’t know what’s at stake—and we have plenty of those. Banana republic, here we come." (Read more tax cuts stories.)