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Jeff Beamsley's avatar

When you can print your own money, our debt is not like a mortgage.

Instead our debt is part of the engine that drives the global financial system.

As long as our GDP grows faster than our debt, all is well.

Here's a little interest rate example of how you can grow down the debt.

Let's assume that the GDP grows at an aggressive 3% a year and an inflation rate of 2%. As long as our debt grows at less the 3%, debt as a percentage of the GDP goes down.

When that has happened in the past (Obama administration), interest rates fell below the rate of inflation. Which meant that investors were in fact paying the US to hold their money securely for 10 years.

Keynes basically said during tough times, the government should spend money to support the economy. During good times, the government should reduce spending and raise taxes in order to drive down the debt-to-GDP ratio and give us some flexibility during the next recession.

Unfortunately Republican presidents inevitably REDUCE taxes during boom times which only makes the next downturn that much more difficult.

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Bill Alstrom (MA/Maine/MA)'s avatar

Dave,

What you just said would be what a "fiscal conservative" would applaud. There is nothing "conservative" about the MAGA clowns in the House of Representatives. The Oligarchs have bought them their elections and now they will pay them back with OUR money. I call it fraud.

The only silver lining I see in this travesty is that it is such a transparent transfer of wealth from most Americans to the ridiculously already rich. This is the basis for "class warfare". Most of us against them. THIS is a "Let them eat cake" moment!

I believe the backlash from this will reverberate for decades and the "Republicans" will lose control for several cycles. Ya don't pay for bonuses to the rich with money from Medicaid and Medicare. It is more than cruel. It is political suicide.

As to elections being undermined, recent rulings in Michigan are an example of how the courts are holding sacred the states right to conduct Federal Elections. 2026 will be a figurative GOP bloodbath - self inflicted.

86 47

86 MAGA

86 Oligarchs

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