On Fri, 30 Jan 2004, Doug Henwood wrote:
> But if the debt/GDP ratio is constant you're probably not adding any
> new programs, though you're still wasting money on debt service. If
> the debt/GDP ratio is rising, you may be adding new programs, but at
> some point the creditor class is going to get pissy and demand
> retrenchment - or, as Jim O'Connor said somewhere, debt increases
> capital's power over the state. And you'd be wasting an
> ever-increasing amount of money on debt service. Seems to me that
> permanent deficit financing (as opposed to the short-term fiscal
> stimulis kind) is rather like the liberal approach to litigation - an
> evasion of building popular support for a policy, and its replacement
> by a vulnerable and temporary fix.
>