New York Times Gets It Fundamentally Wrong on the Budget Impasse

The NYT doesn't seem to keep up to date with writings on the budget deficit even in its own paper. As I have often pointed out, the large budget deficits of recent years are entirely attributable to the plunge in the economy caused by the collapse of the housing bubble. Paul Krugman has recently been harping on this point in his NYT column and blog. For this reason, its news story claiming that:

"Years of increased spending on everything from wars to expanded entitlement programs — combined w...