From Paul Krugman
As some of us have tried to explain, debt, while it can pose problems, doesn’t make the nation poorer, because it’s money we owe to ourselves. Anyone who talks about how we’re borrowing from our children just hasn’t done the math.
True, debt can indirectly make us poorer if deficits drive up interest rates and thereby discourage productive investment. But that hasn’t been happening. Instead, investment is low because of the economy’s weakness. And one of the main things keeping the economy weak is the depressing effect of cutbacks in public spending — especially, by the way, cuts in public investment — all justified in the name of protecting the future from the wildly exaggerated threat of excessive debt.
If only those "debt scolds" could leave their emotions and pride out of the equation, we'd have a better economy. My only disagreement with Krugman here is that he, like the people he criticizes, are far too pessimistic. Despite the idiocy of austerity, our economy is doing better as I noted earlier today.
3 comments:
Nope.
What happened to all that money spent on 'shovel ready jobs'? Apparently you and Kruman's solution is 'do it again, even harder'.
That you both believe you can owe money to yourself should make it clear to anyone the level of your economic intelligence.
Krugman has turned into a Political Hack. The fact that you parrot this fraud is laughable. Maybe you dig a bit deeper into his assumptions before you trumpet stupid ideas as great thought.
Krugtron the Invincible has been a hack for a long time. Personally, I think Keynes himself would pimp-slap Krugman for taking his ideas to a reductio ad absurdum. Or maybe even just for that strange, glittering, squirrelly-eyed look he gets on TV.
Post a Comment