And the Clinton surpluses destroyed the U.S. economy. No, really.
Mike the Mad Biologist has more.
We’re not broke
2 thoughts on “We’re not broke”
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And the Clinton surpluses destroyed the U.S. economy. No, really.
Mike the Mad Biologist has more.
Comments are closed.
Good article by Mike.
Post-Keynesian economics is agnostic about deficits, believing deficit spending by a country that controls its own fiat currency (as opposed to countries like Greece that don’t have their own currency) is only limited by resources. That most inflation is caused by oil and other commodities, not by budget deficits.
@deficitowl on Twitter is a good source for plain-English post-Keynesian commentary on economics.
Mostly agree. But the one problem of global integration is that deficits in investment currencies are relative. The absolute markers that the Republicans and Simpson/Bowles posit are nonsense. We are the go to currency at the moment. Inflation triggered by flight from the dollar is not necessarily bad. Wage earners did relatively better during the inflationary cycles of the 60’s,70’s and early 80’s. With inflation flattened we got left behind. In the end, the dirty little secret of all this debt fixation is that we will never default. We will pay off the debt in crisis with a dollar having no residual value. We will never grow our way out, especially in this disparity of wealth environment.