Deficit Economics

On Monday, President Bush warned that the federal budget could slip into a deficit for the first time in four years. Democrats have been quick to blame the tax cut that the President pushed through last year. But Bush says the blame lies squarely on the economic slowdown and the war on terrorism. In the prosperous days of the late 1990s, Americans got used to balanced budgets and even budget surpluses. But those days of prosperity seem to be over. This hour, Harvard economic policy guru Benjamin Friedman explains whether having a balanced budget really matters.

Guests:

Benjamin Friedman, Professor of economics at Harvard University

author of "Day of Reckoning: The Consequences of American Economic Policy Under Regan and After" and co-author of "Does Debt Management Policy Matter?"