Friday, February 27, 2009
Too late! Debt terrorists have gotten to Obama
"In the midst of abundance we preach privation." -Warren Mosler
It's unfortunate that Obama subscribes to the views of the "deficit terrorists," who believe that the government's means are limited. He raises taxes and "scours the budget for savings" in the false belief that spending is somehow constrained by tax revenues or a surplus of on-hand gov't savings.
In the meantime the wealth producing resources and capital (including human capital) of the nation sit idle, raising the likelihood of a permanent decline in America's standard of living relative to the rest of the world.
The true legacy that we leave to our children and grandchildren is not the debt, so long as that debt resulted in a rise in output, employment and wealth. It's the latter that we pass along and exactly the reason why the debt our grandparents ran up during the 1940s left the current generation richer, not poorer.