Krugman: 'The Deficit Doesn't Matter'

by: Tim Iacono

Well, apparently there is at least one thing that former Vice President Dick Cheney and Nobel Prize winning economist (and unofficial White House adviser) Paul Krugman have in common. They both feel the same way about deficits - they don't matter.
IMAGE Click to enlargeOn yesterday's This Week with George Stephanopoulos, Krugman made what sounded like an off-hand remark, one that almost didn't even seem worth saying as it was so obvious to everyone in the room. From the ABC transript:

Important political fact, which is that whatever you would do with the deficit, the public won't notice. In 1996, a majority of Republicans thought that the deficit had increased under Clinton, even though we had in fact been on an incredible run. So no, I mean, the deficit doesn't matter. The economy matters. And that's why somehow or other, Obama has got to get jobs being created.

Yes, I know. The national debt is now over $12 trillion, not the $11.5 trillion as depicted above. No one really seems to care - $11 trillion, $12 trillion, $20 trillion? It's only