2.THE DEBT HAS BEEN HIGHER BEFORE and the sky didn’t fall. The debt incurred to win World War II caused taxpayers to be on the hook for a debt that was significantly bigger, as a percentage of G.D.P., than debt today. Not coincidentally, that heralded a great boom in our economy.
3. THE FEDERAL BUDGET NEVER HAS TO BALANCE!
We really never have to pay the debt back. The government life span is infinite so there will never be ‘a day of reckoning’ when all debts must be settled. We owe it mostly to ourselves anyway and since the debt is in dollars and we can print some more up when we want, there is no current emergency.
4. THE FEDERAL GOVERNMENT SHOULD DEFICIT SPEND FOREVER – if the private sector is ever to reach its full potential!
The USA can print money without taxing or borrowing and except in uncommon circumstances, without causing inflation. Government spending absolutely fuels the economy and especially when the economy is underemployed because the private sector gives up nothing in return. Only the government can create demand out of thin air. Modern capitalist economy without ‘public sector demand’ will fail because the private sector is incapable of consistently generating sufficient demand to hire all those willing to work. This is in spite of it being able to produce enough output for everyone to enjoy.
5. The DEBT IS GOING DOWN ANYWAY
the CBO reports that the debt is projected to GO DOWN in 2013 to $845 billion. Then $616 billion in 2014 and $430 billion by 2015. And this is based on the government doing nothing different than it is already doing today.
6. INCREASING THE DEFICIT IS THE SOLUTION
The CBO confirms that a short term increase in the deficit like Obama wants to do is the right thing to do. It will BOOST GNP from 2014 to 2016. Then only later it recommends cutting the deficit.
7. AMERICA IS IN TROUBLE BECAUSE WE ARE NOT DEFCIT SPENDING ENOUGH
The solution could not be clearer. We need MORE DEFICIT SPENDING, not less. Remember, a recession is caused by a lack of spending and ANY government spending IS money is someone’s pocket to spend. the primary driver of how much revenue we get as a percent of GDP is unemployment. Yes, debt matters. But right now, other things matter more. We need more, not less, government spending to get us out of our unemployment trap. Deficits raise the level of private wealth! The wrongheaded, ill-informed obsession with debt is standing in the way. Ironically, conservative Tea Party plans like Ryan’s is a private sector wealth destroyer.