Wading in Red Ink

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If you think your credit card bills are bad, think of how the bean counters in Washington feel. In just the past year, the U.S. government has managed to rack up more that a 400 billion dollar deficit.

Next year, the bill is going to be even bigger, close to 480 billion dollars, and that’s not even counting the billions that the President says he needs for Iraq.

Some say that deficits can be good things, and have even been known to stimulate economies. But New York Times columnist Paul Krugman doesn’t buy the swashbuckling confidence of the supply siders. He says this deficit is a malignant pox — one that offers little promise of growth or stimulus, and will change the way Americans live and work and save for generations to come.

Guests:

Paul Krugman, Professor of Economics and International Affairs at Princeton University, columnist for the New York Times and author of “The Great Unraveling: Losing Our Way in the New Century.”