The Public Fears the Consequences of Going Long Periods of Time Without Eating More Than it Fears Starvation

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Wednesday, 25 May 2011 06:50

That is what the Washington Post told readers this morning in an article headlined:

"in poll, debt is scarier than default."

Of course fearing debt more than default makes no sense just like fearing the consequences of not eating more than starvation makes no sense. The government will always have the option to default on its debt. The consequences would of course be enormous, but there is no reason to think that the consequences of default would be greater 10 or 20 years from now. If the public is prepared to default on its debt, it is difficult to see why it would not want to in effect borrow for free for another 10-20 years and then default to its creditors.

As a practical matter, it is obvious that almost no one has any understanding of what default means nor do they have any idea of the size of the debt and its consequences. One of the main reasons for this confusion is that politicians have sought to build up fears about the debt and they have been allowed to do so with the assistance of major news outlets like the Washington Post and National Public Radio.

When politicians (including political figures like Peter Peterson and his employees) make obviously false statements about the deficit and debt these outlets have routinely passed them on to their audience as plausible arguments. They have rarely treated them as gaffes, like for example then Senator Obama's comments about guns and religion during the Pennsylvania primaries.

There has been a serious effort (strongly supported by the Washington Post) to hold teachers accountable for what their students learn. Teachers whose students do not learn are supposed to be fired. By this standard, a high percentage of the reporters and editors who deal with budget issues would be out looking for work today.