There They Go Again; Liberal Demagoguery and the Debt
By: Doug Holtz-Eakin
Newsweek is out with an interview of former National Economic Council Director Larry Summers that includes the gem:
Newsweek: “Do Republicans overhype the dangers of government debt?”
Summers: “Anyone who takes seriously the idea that the debt limit could not be extended and there could be a default even for a nanosecond on US debt is a child with a match in a dynamite storeroom.”
There are two important lessons from this exchange. First, Summers does not answer the question. Consistent with his Obama Administration roots, when asked about the economic consequences of the debt his policies have produced and will further accumulate, he simply refuses to acknowledge the seriousness of the issue or any culpability for creating the problem.
Second, his answer is part of a concerted effort by current and former Administration officials to paint conservatives as irresponsible and eager for a default and financial crisis. As I explain in my Financial Times piece the reverse is actually the case: conservatives, including the Tea Party candidates, are America’s best hope for avoiding a financial calamity.