Clintonism, Monicagate and the budget

Doug Henwood dhenwood at
Tue Feb 9 15:30:03 PST 1999

curtiss_leung at wrote:

> Exactly how would a debt paydown slow/shrink growth?

Because it's fiscally contractionary, sucking up purchasing power - if you believe in Keynesianism - making growth slower that it would otherwise be. Keynes has a passage in the Treatise fantasizing about a lovely paradise that's spoiled by a thrift program.


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