"Mirage"

Paper Summary:

This paper examines the new book by journalists George Hager and Eric Pianin entitled "Mirage: Why Neither Democrats Nor Republicans Can Balance the Budget, End the Deficit and Satisfy the Public". The author of this paper calls "Mirage" a whirlwind trip through the fiscal policies and activities of the White House and Congress. The paper demonstrates how the book sheds light on why balanced budgets and zero deficits are virtually impossible to achieve, despite the fact that everyone is always trying to do so. The paper parallels the book's assertion that most presidential candidates run on the platform that they will balance the budget while in office and many congressional candidates are elected based on similar promises. However, as the book explains, what the public wants is often impossible when considering what the public is willing to sacrifice. The paper also critiques the book's discussion of the impact of partisan politics on budget negotiations.

From the Paper:

"Analysts at the Congressional Budget Office are predicting a fiscal nightmare for the federal government in the near future. The retirement of the baby boomers will nearly double the number of eligible beneficiaries for Social Security and Medicare. With the working population only rising by 25%, the expenses are nowhere near being offset. The result will be a deficit skyrocket if benefits are not reduced or taxes are not raised. The $4 trillion debt of today will jump to an estimated $21 trillion by 2020 and $81 trillion by 2030. Interest payments alone will destroy the economic framework of the United States. Despite the fact that the solution to the problem is clear, getting a polarized Congress representing an equally undecided constituency makes the problem unsolvable. The story begins in early 1995."

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