Feel No Pain: Why a Deficit in Times of High Unemployment is Not a Burden

Publication Date: September 2010

Publisher: Center for Economic and Policy Research

Author(s): Dean Baker

Research Area: Economics; Labor

Keywords: budget deficit; policy; unemployment; recession

Type: Brief

Coverage: United States

Abstract:

With the economy suffering from near double-digit unemployment, public debate is dominated by concerns over the budget deficit and national debt. This discussion is unfortunate both because there is no reason for people to be concerned about the deficit at present, and more importantly, because it discourages action on the unemployment crisis that is devastating the country.