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by TomOfTTB
5258 days ago
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Honestly this is pretty straight forward wishful thinking. It certainly isn't Keynes (who believed in paying debts down during upswings). Here is the article's point in his own words... "The US government only has to make sure that the US debt growth rate doesn’t exceed the growth rate of our tax revenue. As long as we take in money faster than we borrow, we can always meet interest obligations and grow faster than we owe money." Interest is, by definition, paying money for nothing. You received money in the past and are now paying for the privilege of having enjoyed whatever that money bought you back then. But in the present tense Interest is money for nothing. The author foresees a world where we are constantly paying more and more money and getting nothing in return (because the previous generation enjoyed whatever that money bought them). While our debt continues to rise because we're putting nothing towards the principle and in all likelihood still spending more than we take in. That doesn't sound like a good future to me. |
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