Nobody expects to sustain the levels this year & next. No we should not worry about paying it down. We should worry about it growing too fast over a sustained period.
We should also worry about Obama's Faustian bargain w/the electorate, to wit, "I will not raise your taxes if your income is under $250K." That's the killer, as far as social-democracy is concerned.
-----Original Message----- From: lbo-talk-bounces at lbo-talk.org [mailto:lbo-talk-bounces at lbo-talk.org] On Behalf Of Doug Henwood Sent: Sunday, April 26, 2009 7:38 AM To: lbo-talk at lbo-talk.org Subject: Re: [lbo-talk] liberal austerity
On Apr 26, 2009, at 1:17 AM, Max B. Sawicky wrote:
> That said, Montgomery is a deficit hysteric. In one
> sense, you can hardly blame her. She is just echoing
> what a lot of uninformed economists say.
Max, have you ever met a deficit you don't like? Surely the sort we're
seeing this year and next isn't sustainable. Should we worry about paying it down, or just forget about it?
Doug ___________________________________ http://mailman.lbo-talk.org/mailman/listinfo/lbo-talk