But first let’s check in with Krugman’s column from today…http://www.nytimes.com/2015/08/21/opinion/paul-krugman-debt-is-good-for-the-economy.html?action=click&pgtype=Homepage&module=opinion-c-col-left-region®ion=opinion-c-col-left-region&WT.nav=opinion-c-col-left-region&_r=0
In which he concludes:
“In other words, the great debt panic that warped the U.S. political scene from 2010 to 2012, and still dominates economic discussion in Britain and the eurozone, was even more wrongheaded than those of us in the anti-austerity camp realized.
Not only were governments that listened to the fiscal scolds kicking the economy when it was down, prolonging the slump; not only were they slashing public investment at the very moment bond investors were practically pleading with them to spend more; they may have been setting us up for future crises.
And the ironic thing is that these foolish policies, and all the human suffering they created, were sold with appeals to prudence and fiscal responsibility.
And now for some of the commenters best:
Verona, N.J. 3 hours ago
Anyone in America who’s ever taken out a mortgage prior to 2004 (when Wall St. and the Neo-Con-Artists let Wall St. destroy the housing and mortgage market with economic plutonium) knows that mortgage debt is a good way to invest in your future wealth, well-being and happiness.
The same goes for public debt.
Debt financed over time with a good interest rate tends to work out very well historically, assuming the unregulated, Randian, Wall St. pyromaniacs stay far away your house and your mortgage.
America’s annual deficit has to be looked at in both historical terms and as a percentage of GDP.
Federal spending today is about 20% of GDP, the same as America’s 50-year historical average going back over to the 1960’s.
The major factor that has increased the national debt – national mortgage, so to speak – is not spending, but the implementation of ‘voodoo economics’ tax cut malpractice for the richest Americans in the 1980’s by Saint Reagan and again by Boy George in the 2000’s.
Federal revenues declined significantly and caused permanent damage to the national mortgage from Reagan/Bush tax cuts.
Combine the 1% ‘voodoo’ tax cuts with the right-wing’s 2008 ‘free market’ 2008 torpedo into the national mortgage which collapsed federal revenues to the catastrophically low rates of 14% and 15% and you get the truth about GOP policy – they are fiscal pyromaniacs.
National debt is fine…until right-wing pyromaniacs sabotage it with tax cuts for the 1%.
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