Economic ignorance is very prevalent among Progressive pundits. erza Klein whom some consider a genius, is illiterate when it comes to economic matters. He advocates more deficit spending.
Today’s deficits are, if anything, too small. Yes, I said it. Too. Small. We’ve seen real, clear damage from spending cutbacks — if public employment had remained steady since 2008, unemployment would be down to about 7.1 percent — and the world is begging us to borrow more money. In fact, they’re paying us to borrow more money; real interest rates on Treasury debt have, amazingly, turned negative. We should accept the world’s generous, limited-time offer.
This is the moment to pass a big tax cut for employers who hire new workers, to rebuild our infrastructure at bargain- basement rates, and to help state and local governments reverse the deep cuts they’ve made in recent years. It’s not the moment to begin sequestration.
Future deficits are a legitimate concern. But as either Yogi Berra or Niels Bohr said, predictions are very difficult, especially about the future. And future deficits are, annoyingly, situated entirely in the future. So most everyone in Washington has outsourced the difficult task of estimating future deficits to the genial and diligent wonks at the Congressional Budget Office.
I thought stimulus was supposed to be about infrastructure? Erza Klein never took an economics lesson in his life.
Tags: Debt, Deficit, Erza Klein
