Why is Sarah Palin popular!

Much has been made recently about Ms. Palin and her popularity.  While Rich and his inherent sexism make much of her appearance, I think she represents the thoughts of many folks who see bullshit and are calling it on our government.  To the point, we are going broke, let's stop digging.  We see that, she says that, yet from the following:  From Krugman

These days it’s hard to pick up a newspaper or turn on a news program without encountering stern warnings about the federal budget deficit. The deficit threatens economic recovery, we’re told; it puts American economic stability at risk; it will undermine our influence in the world. These claims generally aren’t stated as opinions, as views held by some analysts but disputed by others. Instead, they’re reported as if they were facts, plain and simple.  They are not?

Yet they aren’t facts. Many economists take a much calmer view of budget deficits than anything you’ll see on TV. Nor do investors seem unduly concerned: U.S. government bonds continue to find ready buyers, even at historically low interest rates. The long-run budget outlook is problematic, but short-term deficits aren’t — and even the long-term outlook is much less frightening than the public is being led to believe.  The smugness of that last sentence is amazing and is why America hates liberals and watches Fox News.  "We, the smart people will decide how close to the cliff to drive.  We know what is best.  Yes our long-term outlook is in trouble but don't worry, you are being led incorrectly."

So why the sudden ubiquity of deficit scare stories? It isn’t being driven by any actual news. Really?  Like legislation to raise the debt limit?  It has been obvious for at least a year that the U.S. government would face an extended period of large deficits, and projections of those deficits haven’t changed much since last summer. Yet the drumbeat of dire fiscal warnings has grown vastly louder.

Let’s talk for a moment about budget reality. Contrary to what you often hear, the large deficit the federal government is running right now isn’t the result of runaway spending growth. Instead, well more than half of the deficit was caused by the ongoing economic crisis, which has led to a plunge in tax receipts, required federal bailouts of financial institutions, and been met — appropriately — with temporary measures to stimulate growth and support employment. And the other half?

The point is that running big deficits in the face of the worst economic slump since the 1930s is actually the right thing to do. If anything, deficits should be bigger than they are because the government should be doing more than it is to create jobs.  So if we are broke, the cure is to max out the credit cards?  That does not even pass the laugh test.  Government does not create jobs, except in government.

True, there is a longer-term budget problem. Even a full economic recovery wouldn’t balance the budget, and it probably wouldn’t even reduce the deficit to a permanently sustainable level. So once the economic crisis is past, the U.S. government will have to increase its revenue and control its costs. And in the long run there’s no way to make the budget math work unless something is done about health care costs.  Then why not start now?