Reframing the Deficit Misperception

We have two major camps in the U.S. right now arguing over which economic problem is more pressing: Is it the deficit? Or, is it jobs?

The real problem is one of perception. Once our perception of the situation is clarified, the more urgent economic problem can be identified clearly.

For the last few months we have been fed a daily diet about the need to cut the deficit by cutting federal spending. There has been very little circulated about increasing revenue by increasing taxes especially on those who can afford to pay more in taxes. Nor have we heard much on a regular basis about an economic recovery built around job creation.

When the unemployment rate jumped back over 9% in June 2011, it seemed that perhaps policy makers and politicians would focus their attention on job creation but it seems that the deficit meme is still paramount.

Feyth wrote:"The saving grace is that job creation will help reduce the deficit."

This simple truth is so easily buried under the Giant Propaganda Machine that is makes my head spin.

Create jobs. I don't care how you create them or how much it costs. Do it. Employed people spend money and pay taxes. Bye-bye deficit.

Doh.