To read economic and political commentary with any kind of frequency is to be bombarded daily - and hourly for that matter - with breathy articles about a United States groaning under deficits that surely signal bankruptcy, Social Security checks that eventually won't clear, and of course a looming financial crisis. A recent New York Times column by noted deficit scold David Stockman naturally referenced America's "desperate" financial situation.
Much of this commentary is well written, it's certainly popular, but it's also total nonsense.
Really? What's driving that commentary? Let's examine your article and see if we can find the gist of your claim - and then see whether it makes sense!
To understand why they should, it has to be remembered that large as the Treasury's debts are, basic economic models whereby the U.S. economy grows in the 3% range show that over time the debt could be paid off with ease.
Except that, when adjusted for new debt issuance, the compounded growth rate since 1983 is -3.96%. Yes, annually. Incidentally, from 1953-83 it was 5.30%. Yes, annually, and yes, positive.
What happened? Idiocy happened. The bone-smoking by people like you happened. The premise that we could "Grow" the economy by borrowing to consume, and that we could relabel various parts of "consumption" as "investment" as a means of hiding what we were doing - in particular,as regards residential construction (that is, houses.)
But changing the label on a box of dog turds to "Chocolates" does not make them chocolates. It just makes the person who does it a liar and a fraud.
Indeed, the true crisis at present is all the government spending which signifies capital waste and destruction, and what that tells us about the myriad Microsofts, Googles and Intels that never saw the light of day thanks to our federal government consuming so much limited capital.
Комментариев нет:
Отправить комментарий