WASHINGTON — With the presidential election swiftly approaching and the fiscal cliff close on its heels, politicians are doing little to educate the public about the federal deficit and instead increasing fear and confusion among many Americans, according to some federal budget experts.
“One thing that worries me the most is not just that the candidates are obfuscating and not giving great details but that they end up scaring the public in a way that I think is irresponsible,” said Alice Rivlin, an economist and Senior Fellow at the Brookings Institution who served in President Bill Clinton’s administration.
During a panel discussion on federal budget policy Monday morning at the Urban Policy Institute, experts lamented the lack of clarity brought forth by this year’s presidential campaign.
“A large number of people don’t understand the difference between the deficit and the debt,” said David Wessel, economics editor at the Wall Street Journal. Thus far the political rhetoric surrounding the deficit has left many Americans in the dark when it comes to the basics on issues of the federal budget, he said, and fearing the worst when it comes to cuts in benefits including social security and health care.
With tax hikes and budget cuts set to kick in at the start of 2013, candidates are talking more and more about their plans to cut spending, increase revenue, close loopholes and save the middle class. What they’re not talking about is who will bear the brunt of this economic pain, said Eugene Steuerle, a senior director at the Urban Institute. Deficit reduction, “means asking everyone to give up something,” he said.
Discussion of long-term deficit reduction, a critical component in stabilizing the U.S. economy going forward, has been thrown on the back burner. Resolutions that included immediate stimulus in the face of a slowing economy have been dismissed as fear over the mounting deficit grows and candidates focus on winning votes with near-term plans. “Given the slow growth of the economy and slow growth, I thought there would’ve been someone who said contraction right now isn’t a great idea,” said Wessel.
A plan to reduce the deficit in both the short and long-term has been elusive thanks to the lack of congressional compromise, leaving Americans confused, frustrated and disheartened. According to Wessel, the “sense of despair about Washington is enormous.”
While most Americans are still having a difficult time ascertaining the complexities of the U.S. budget crises, they are becoming increasingly aware of how harmful the lack of bipartisan compromise can be said Wessel, “Something is really broken and people sense it.”