A more intriguing question is, "Why do Americans vote for such policies, when they should know that trouble will probably result?"
One answer is that many voters do not see the looming budget troubles. A better answer is that most Americans did not actually vote for these policies. Voter turnout in the 2002 election was only around 40 percent, of which around half went to the Republicans, or around 20 percent of eligible voters.
Of course, the outlook need not be so bleak. War in Iraq may be avoided. Proposed tax cuts may be watered down or abandoned. But I predict large budget deficits for years to come, and a growing sense of unease within the US and abroad about America's macroeconomic situation.
Foreign investors may decide to cut back financing America's budget and current account deficits on favorable terms. The dollar may weaken, and fears of inflation may become more pronounced. All of this will make US policymakers less confident and less flexible in their responses to economic shocks.
The poor, both inside the US and abroad, could suffer the most, as President Bush and the Congress tell the American people and the world that -- due to the large budget deficits -- there is no money available to address problems of poverty, disease and education.
Unless ordinary Americans wake up to these fiscal risks, the rich may walk away with another multi-billion-dollar gift as the country and the world bear the harsh consequences for years to come.
Jeffrey D. Sachs is professor of economics and director of the Earth Institute at Columbia University.
Copyright: Project Syndicate
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