back to 1835!

Carl Remick cremick at
Tue Aug 3 13:21:38 PDT 1999

> Now, we sure as hell don't want to be running surpluses if a
> recession hits,
> and I agree with Max and others than in an ideal world,
> spending the money
> on job creation and social services would be preferable, but
> given political
> realities paying off the debt and reducing payments to rich
> bondholders does
> not seem like a terrible thing at the time when GNP growth is high.

Nathan's point seems well taken. Given that we're living in a fool's paradise and there is no appreciable demand for spending on job creation and social services, what *is* the objection to paying off on the debt until the (ever nearing!) recession hits? Wouldn't this mitigate any adverse inflationary impact of deficit spending when the recession does occur?


More information about the lbo-talk mailing list