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While I think the economy was good, I think it could have been even better with a little deficit spending under Clinton. What we call "national debt" is just a
by epistasis 2y ago
While I think the economy was good, I think it could have been even better with a little deficit spending under Clinton.
What we call "national debt" is just additional money supply. Instead of dollars they are bonds, that let us retroactively control the amount of them by merely changing interests rates at the Fed. Which is why they are superior to printing a ton of dollars and spending them directly.
When the world needs additional money supply, and they preferentially choose to use money denominated in dollars, that means that our economy wins out. If we are not deficit spending then we are likely leaving economic gains on the table.
- rubzah 2y agoThe "additional money supply" is a (hidden) tax on people with fixed incomes and no hard assets.
- epistasis 2y agoNo it is not. Inflation would reduce their spending power, but additional money supply is a different thing. Additionally, most "fixed incomes" these days are inflation pegged, so even inflation is not a burden. But it's never a tax. But since you put it so starkly, it must be pointed out that when we do not deficit spend when we could, it is to the detriment of productive members of society that are producing all the things that those on fixed incomes need.