On May 18, 2009, at 1:20 PM, Max B. Sawicky wrote:
Consider the counter-factual -- the bondholder doesn't buy the Gov bond, he buys a private sector asset. Abstracting from risk/return, how are the rich any richer?
What kind of Keynesian are you? Much government borrowing represents money that wouldn't otherwise have been spent. There's no crowding out - it's an addition.
That aside, higher gov debt service means less money to spend on better things, like education or health or environmental reconstruction. It's a debased use of public funds.
Doug _______________________________________________ pen-l mailing list [email protected] https://lists.csuchico.edu/mailman/listinfo/pen-l
