[ExI] Deficit spending and never admitting you were wrong

[spike at rainier66.com]

> On Behalf Of John Clark via extropy-chat
Subject: Re: [ExI] Deficit spending and never admitting you were wrong

 

 

On Tue, May 26, 2020 at 4:58 PM spike jones via extropy-chat <extropy-chat at lists.extropy.org <mailto:extropy-chat at lists.extropy.org> > wrote:

 

>> …Many economists, including yours truly, considered these fiscal and monetary developments reasonable under the circumstances. It was, we argued, a good thing to run deficits in a slump, with little risk that these deficits would create any kind of crisis. It was also a good idea to print money, with little risk that doing so would lead to inflation…  Krugman

 

> John your theory

 

It's not my theory, it's the theory of a Nobel Prize winner in economics who was proven to be absolutely right in 2008….

 

> will get a test very soon. 

 

And if it passes that test in 2020 as it did in 2008 …

John K Clark

 

 

We are spending way more of the federal budget to service debt now than before 2008.

 

If the 2020 isn’t extremely painful, then I would be even more for deep tax cuts.  If we can somehow solve budget problems by printing more money, the tax rate should be in the single digits and the money-minting numbers should be in the 16 digits.

 

I think we are fooling ourselves thinking we can print our way out of trouble.  No country can do that, it doesn’t matter what form of government they have.

 

spike

 

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