Why do Americans live in denial?

We are in the middle of a financial meltdown that has saddled the US taxpayer $850 billion in commitments (so far) that have yet to be even budgeted. And yet, both political parties (one much more so than the other) pretend that all of this can be paid for without raising taxes.

One gets the sense that, as much as Americans say they want to be told the truth, they seem quite ready to punish anyone who does—i.e., that there are deep structural flaws in capitalism that will always require some form of governmental regulation to keep the system stable and honest, and that taxpayers will always have to pay taxes to cover it—and pay more if they want a better country.

The facts are that our health care system is the most costly in the world and ranks 42nd in health outcomes. Our war on drugs is an expensive $50 billion per year failure. And, we incarcerate way more people per capita (and 7 times more Blacks than Whites) than any country on earth. Yet realistic popular solutions to these problems don’t even come up for debate in our allegedly democratic system.

Have people abandoned reason in favor of a political fantasy life? Are we coasting on our laurels and living in the past? Is a failure of our democratic institutions? Or, have we become so used to being pandered to that we have become addicted to flattery? Are our lapses with reality only temporary, or will our politics continue to be a matter of emotional hot buttons, perceptions, propaganda and spin?

Why is our denial so persistent?