US/gov/budget/deficit

About
In the 🇺🇸, the frequent existence of a budget deficit is often used as a stick to convince people to agree to particular sacrifices, regardless of whether those sacrifices actually help the budget. When the deficit is particularly severe, it will cause many people to experience a fear/panic reaction that supercedes higher reasoning abilities, and they consequently are more amenable to concessions they would never make under more normal circumstances.

2008 crisis
The 2008 financial meltdown seems almost to have been engineered for this purpose, and the Republicans have been using it in exactly that way: to argue for cuts that will not make a significant difference to the budget but that will increase the general level of chaos in the US and elsewhere, leading to more uncertainty and fear, leading to an increasingly panicked and gullible citizenry.

2011 fallout
This manipulation seems to be coming to a head in 2011, with draconian budget cuts and accompanying anti-democratic legislation by newly-elected "Tea Party" Republican politicians at the state level leading to enormous public protest in Wisconsin, Michigan, and Ohio, among others.

At the federal level, Republican lawmakers attempted to cut funding for services such as NPR and Planned Parenthood, arguing that these were necessary in order to balance the budget. None of the items they suggested, however, were substantial portions of US discretionary spending, and they finally had to back down rather than risk a politically-damaging government shutdown.

Republicans have also been spreading claims that US Social Security is non-solvent, and that cuts need to be made; many people appear to have been at least partly convinced by this. Aside from being a wildly incorrect claim, reducing Social Security benefits would be unethical, since that would essentially be stealing from those who paid into the system with the promise that they would be taken care of after retirement. (See US/Social Security/myths.) This argument serves solely to undermine people's sense of security.

The single change which would come closest to balancing the budget is to restore personal income tax to pre-Bush levels, although this would not solve the problem completely.

to file

 * 2011-04-14 Senate passes 2011 funding bill, rejects measures to defund Planned Parenthood and health care
 * 2011-04-13 "Patriotic Millionaires": Raise our taxes, please!
 * 2010-11-13 Budget Puzzle: You Fix the Budget (note: does not function in Firefox under Linux; works with Google Chrome): we should be demanding tools like this for every budget battle