I've been concerned about the obsessive concentration on deficit reduction being increasingly touted by Kerry (and other Democrats.
Sure, the Bush deficits are irresponsible and outrageous. But we don't want to turn ourselves into Bob Dole, now do we? Deficit spending isn't necessarily bad when it's used to invest in productive capacity such as transportation, communications, and education. Moreover, it's useful in fighting recessions.
By the way, according to James Galbraith, deficit reduction is not even likely to produce economic growth today as it did in the 1990s.
Galbraith:
The Democrats have a problem. Their base wants jobs and security. Their financial leadership wants a return to the Clinton formula of deficit reduction, leaving low interest rates to generate economic growth and jobs. John Kerry's emerging economic platform pays heavy homage to this formula, but it is unlikely to work out. A return to Bill Clinton's policies will not reproduce Bill Clinton's results. ...
The task of the new administration, therefore, will be to set a new direction for growth and jobs, not only for the short term but also over the medium and long term. Tax cuts (even if targeted well) and easy money are likely to contribute little to this objective. Health-care reform and education are important, but they probably create few new jobs. We need, in short, a patient strategy for social investment -- to meet pressing national objectives while creating jobs, recognizing that success will take determination, time, and money