Saturday, April 21, 2012

The Truth Revealed About Debt and Deficits

By Marshall Auerback, AlterNet
Posted on April 18, 2012, Printed on April 21, 2012

It’s hard to open a newspaper or turn on the TV without being bombarded with narratives suggesting that fiscal policy didn’t work and that we therefore need discipline in the form of balanced budget amendments and debt limits. Even those who see themselves as moderates on the issue are embracing a commitment to “eventually” slash deficit spending once recovery gets underway.

But most of this talk arises from a fundamental misunderstanding about the way debt and deficits actually operate.

No comments: