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From: Jim Devine <[EMAIL PROTECTED]>
> National Debt Grows $1 Million a Minute
> By TOM RAUM, AP
>
> WASHINGTON (Dec. 3) - Like a ticking time bomb, the national debt is
an
> explosion waiting to happen. It's expanding by about $1.4 billion a
day
> - or nearly $1 million a minute.
One problem we have on the left is that we like the idea of crisis so
much that we sometimes fall under the influence on non-crises that are
disguised as crises. This is one of them.
^^^^^
CB : I see what you mean, but you aren't saying that AP (AOL
newsservice where this article came from) are left yet , are you ? The
rev is really moving along if AOL is left.
This is not a left perspective, but a perspective about "the" economy
that is being propagandized to the millions. Why does AOL corporation
want people to feel that there is a national debt ? So that they will
accept privatizing social security ? Why is the monopoly media putting
out this perspective that you say expertly is misleading ? This money
75% of which is owed to the real "People" , why is it portrayed as a
"crisis" , not on PEN-L, but in the major media. ?
^^^^^
> The national debt is $9.13 trillion, about $30,000 for every person
in
> the U.S. The total is worrisome because interest payments on the
debt
> strain government resources -- and things could get worse if the
economy
> slows down, as some economists predict.
It should NOT be called the "national" debt. It's the _government's_
debt and about 75% of it is owed to people in the U.S. So 75% percent
of it should be consider part of the nation's assets. If you don't see
this, please e-mail me and I will give you my home address -- so you
can mail me your government bonds. If they're such a burden, I'll take
them off your hands.
^^^^^
CB: I wish I owned some. The US government is the soundest investment
there is no ? We can't imagine Uncle Sam in financial trouble. That's
one recession that even left economists predict won't come anytime
soon.
-
^^^^^
The interest payments on the _government's_ debt do represent a
problem in the government's budget. (But remember than about 75% are
paid to people inside the U.S.!) The problem of interest payments is
not a problem in the short run, even if a recession hits, because the
Federal government can and does run deficits -- it does not have to
balance its budget. Smart economists and politicians don't force a
budget balance in a recession, since they know it makes matters worse.
^^^^^
CB: Plus Keynesianism counsels deficit spending so as to pump money
into the economy through government spending even if it is borrowed
money spent. Of course, the rightwing took over Keynesianism and
deficit spends on war.
^^^^^
Over the long haul, the economy grows, generating more & more tax
revenues for the government. These (along with tax hikes or spending
cuts) allow the government to pay interest. The problem occurs only if
the government debt grows _faster_ than the economy for several years,
so that the government debt to GDP ratio rises. But last time I
looked, the government debt was not at its previous peak (67% of GDP
in 1996, for gross debt). It was far below its previous peak (122% of
GDP) at the end of WW2. It's like 66% now. Note that the US economy
did very well during the 1950s, despite the debts left over from WW2.
^^^^^^^
CB: Remember how the rightwing of the Goldwater era used to make such a
big deal about liberal deficit spending ? Then Reagan came along and
doubled the national debt, added as much to the national debt as all the
previous presidents back to Washington combined. This was military
industrial complex deficit spending, Keynesianism if I'm not mistaken,
^^^^^^^
The government's debt is going to be more of a problem in the future
if the medical-cost inflation problem isn't solved (because the
Federal government's Medicare costs rise with those of the private
sector), if the Bush tax cuts for the rich are not allowed to lapse,
if the Iraq war is allowed to continue and grow, and if the
"alternative minimum tax" problem (which is pushing more and more
middle-class people into rich-people tax brackets) is fixed without
compensating tax hikes.
Even so, the government's deficit would not be a problem if the
borrowing went to do something productive, i.e., that promotes the
growth of the economy. Examples include fixing New Orleans and
investing in public health and education. Of course, the government
squandered the borrowed money on tax cuts for the administration's
rich friends, and the effort to conquer Iraq.
Instead of worrying about the government's debt, worry about:
1. the way the government has wasted its borrowings (see above).
2. the severe debt loads that private consumers have -- and they,
unlike the US government, are likely to go bankrupt.
^^^^^
CB: We need a general moratorium and forgiveness of little people's
debts. Yea, that will go over like a sack of potatoes.
^^^^^^^
3. the increasing deficits of state and local governments, most of
which are forced by law to balance their budgets.
^^^^^
CB: Believe me, I've been worrying about this for twenty years.
^^^^^
4. the deficit of services that are needed but the government does not
provide.
^^^^^
CB: Bring back the Great Society and the War on Poverty
^^^^^
5. global warming.
^^^^^
CB: Have you heard of the A-list ?
http://lists.econ.utah.edu/mailman/listinfo/a-list
6. etc.
^^^^^
CB: Worry about mass media misinformation about the economy designed
to mislead the masses of the working class and middle incomed.
Worry about the increasing home foreclosures
--
Jim Devine / "The radios blare muzak and newzak, diseases are cured
every day /
the worst disease is to be unwanted, to be used up, and cast away." --
Peter Case ("Poor Old Tom").
