E.J. Dionne argues in today's Washington Post thatthe tea party is winning, because the media conversation is all about how to cut the budget. When is Obama going to come out and say that's not the important agenda now? The important and urgent agenda is to tax and spend: tax the coddled rich, whose taxes have been cut from 90% to 30% and less, and to invest in the American people and infrastructure. This will reduce unemployment and build a better future.
As for the long term deficit, as Krugman has written, it is really all about health care. Obama made a start with the health care bill, but it needs to be pushed much further to really cut health care costs. The Republicon agenda is exactly the opposite of what is needed. It will increase unemployment and undermine the long term strength of the country.