Fix the Debt Admits Corporations Engineering an ‘Artificial Crisis’ to Force Deficit Reduction

In a candid moment, otherwise known as a “gaffe,” former Tennessee Gov. Phil Bredesen said the efforts of corporate-backed Fix the Debt and other debt scolds is to create an “artificial crisis” that would extract federal spending reductions to reduce long-term debt.

Speaking at a gathering of students and business leaders at Lipscomb University in Nashville, Bredesen was joined by financier Tom Pagliara and Robert Bixby of the the debt-scolding Concord Coalition, a billionaire-financed mouthpiece similar to Fix the Debt. From the Tennessean:

The Tennessee Democrat said he and other members of the national Fix the Debt effort are trying to create an “artificial crisis” that would force Congress to bring the $16 trillion federal debt under control.

Fix the Debt is pouring $60 million into creating an artificial crisis with the goal of cutting Medicare, Medicaid, the Affordable Care Act and Social Security. They are doing this with constant fearmongering about the national debt, which top economists say is not an actual crisis.

It is unconscionable that Fix the Debt would cook up a concocted crisis to undercut these important programs while many Americans are facing actual crises: 3.3 million Americans have been unemployed for more than one year and millions will fall into poverty if Social Security is cut.

Fix the Debt’s austerity prescriptions don’t work. Look at what’s going on in the United Kingdom, which instituted strict austerity measures: the British economy is headed for a rare “triple-dip” recession as a direct result of misguided policies like those promoted by Fix the Debt.