Skip to content

Laissez-faire or Laissez-scared?

December 15, 2011

I was reading this story here regarding the GOP pushing for a massive spending bill, which would mean running quite a large deficit. Running a deficit is a good thing though right? More spending on goods and services will create jobs and spur the economy; the usual rhetoric. It’s not necessarily true though. As Paul Krugman points out here, Republicans don’t care about deficits:

But it’s not odd at all, once you realize that the GOP is not now, and never has been (at least not since the 1970s) concerned about the deficit. All the fiscal posturing of the last couple of years has been about using the deficit as a club to smash the welfare state, with the secondary goal of frustrating any efforts on the part of the Obama administration to help the struggling economy.

The entire debate has been fake. If you don’t understand that, or can’t bring yourself to admit it, you’re missing the whole story.

(Thanks much to Professor Xuan for her clever and very witty suggestion for the title!)

Advertisements
One Comment leave one →
  1. ollie permalink
    December 18, 2011 6:25 pm

    good point. i think most that are in high positions of power know the validity of MMT, but they don’t want to admit it. because admitting it takes away the political weapon to use on one’s foe. and this weapon, while false, works well because it is easily digested by the econo-ignorant masses.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

%d bloggers like this: