The nature of America's troubles is easy to state.
We're in the aftermath of a severe financial crisis,
which has led to mass job destruction. The only thing
that's keeping us from sliding into a second Great
Depression is deficit spending. And right now we need
more of that deficit spending because millions of
American lives are being blighted by high unemployment,
and the government should be doing everything it can to
bring unemployment down.
In the long run, however, even the U.S. government has
to pay its way. And the long-run budget outlook was
dire even before the recent surge in the deficit,
mainly because of inexorably rising health care costs.
Looking ahead, we're going to have to find a way to run
smaller, not larger, deficits.
Read the entire essay here: http://www.nytimes.com/2010/01/29/opinion/29krugman.html?ref=opinion