Why do imaginary phantoms terrify, while real-life horrors seem normal? Why do our elected representatives act in ways that trample the values of those who elected them? Consider the current debate in Washington. The city is in full uproar about the so-called “fiscal cliff,” the deep cuts in spending and hikes in taxes scheduled to take place at the end of the year. To listen to this debate, you would think the end of the world will come if Congress and the president don’t reach an agreement to cut Medicare and possibly Social Security and increase taxes over the next …