On the recordMarch 2, 2010
I recommend to my colleagues a February 11 Wall Street Journal column by Stanford economist Michael Boskin, entitled, ``When Deficits Become Dangerous.'' Boskin's premise is that the new taxes and ``enormous deficits and endless accumulation of debt'' in President Obama's budget will create a ripple effect of problems through our economy. He explains that the debt will eventually force additional growth-smothering taxes: ``Such vast debt implies immense future tax increases. . . . It's hard to imagine a worse detriment to economic growth.'' Boskin also notes that ``so worrisome is this debt outlook that Moody's warns of a downgrade on U.S. Treasury bonds, and major global finance powers talk of ending the dollar's reign as the global reserve currency.'' He describes President Obama's budget as ``the most risky fiscal strategy in history.''
