Obama and McCain in denial about deficits, economists say

The nation faces massive shortfalls over the next several years no matter who is elected president, experts say. A bipartisan watchdog group says both candidates' plans would add to the national debt.

By Stephen Braun
LA Times
October 23, 2008

Reporting from Washington — Despite harsh scrutiny from economic analysts, Barack Obama and John McCain remain reluctant to admit what is becoming obvious -- that the nation's economic crisis will take a heavy toll on their ambitious tax and spending plans.

On his website, Obama says the nation's debt is a "hidden domestic enemy" that he pledges to combat. But in recent days, the Illinois senator and his economic advisors have begun to gingerly inch toward an acknowledgment that the rising costs of the Wall Street rescue plan and his promises of middle-class tax relief and other initiatives are likely to lead to a spike in deficit spending over the next several years.

During the final presidential debate, Obama repeated his analogy of using a "scalpel" to offset his spending initiatives with budget cuts. But the Democrat warned of the limited choices facing the next occupant of the White House.

Obama's chief economic advisor, Jason Furman, was more explicit during a conference call this week. "The top priority would be to avoid a deep recession," he said -- suggesting a strategy that could require costly efforts to jump-start the economy.

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