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This is how I view it these days as well. I'm fine with running a deficit as long as we're solving real problems at a mix of time horizons. Using public funds t

This is how I view it these days as well. I'm fine with running a deficit as long as we're solving real problems at a mix of time horizons. Using public funds to funnel more money to the ultra wealthy is the issue for me as a citizen.

throw0101d 2mo ago
> This is how I view it these days as well. I'm fine with running a deficit as long as we're solving real problems at a mix of time horizons. There's nothing "these days" about the idea: that's how all debt should be looked at. How much in interest will it cost you, and are the benefits you get worth that cost? Borrowing money at 2-4% to build water/sewers infrastructure so your population does not die, and thus allows for better economic growth, can pay for the borrowed money easily. Or roads, bridges, rail, schools, scientific research, etc. If you're borrowing money because you have low revenues due to tax cuts (especially in top tax brackets), then perhaps your ROI won't be as good. * https://en.wikipedia.org/wiki/Starve_the_beast https://en.wikipedia.org/wiki/Starve_the_beast
- mathgeek 2mo ago
  That was an explanation of my own views (these days), not a statement about economics.
PunchyHamster 2mo ago
Well the problems are not being solved, they are being added
renehsz 2mo ago
There's nothing wrong with using public funds to solve real problems, but persistent deficit spending is the wrong way to go about it! Deficit spending causes inflation, and that type of inflation is a hidden, regressive form of taxation. It hits everybody, but the poorest suffer most when all the essentials get more expensive. The government creates new money, but really the value of that money comes out of everybody's income and bank accounts. If additional government spending is truly necessary, it should be funded through transparent, progressive taxation, so that it only affects those who can afford to pay the tax, and so that the voting public is aware of it. Unforunately, you're unlikely to win an election on the promise of raising taxes. The hidden tax of inflation, on the other hand, is so perfectly hidden in plain sight that most people don't notice it unless it gets out of hand.

throw0101d 2mo ago

> This is how I view it these days as well. I'm fine with running a deficit as long as we're solving real problems at a mix of time horizons. There's nothing "these days" about the idea: that's how all debt should be looked at. How much in interest will it cost you, and are the benefits you get worth that cost? Borrowing money at 2-4% to build water/sewers infrastructure so your population does not die, and thus allows for better economic growth, can pay for the borrowed money easily. Or roads, bridges, rail, schools, scientific research, etc. If you're borrowing money because you have low revenues due to tax cuts (especially in top tax brackets), then perhaps your ROI won't be as good. * https://en.wikipedia.org/wiki/Starve_the_beast https://en.wikipedia.org/wiki/Starve_the_beast

mathgeek 2mo ago
That was an explanation of my own views (these days), not a statement about economics.

PunchyHamster 2mo ago

Well the problems are not being solved, they are being added

renehsz 2mo ago

There's nothing wrong with using public funds to solve real problems, but persistent deficit spending is the wrong way to go about it! Deficit spending causes inflation, and that type of inflation is a hidden, regressive form of taxation. It hits everybody, but the poorest suffer most when all the essentials get more expensive. The government creates new money, but really the value of that money comes out of everybody's income and bank accounts. If additional government spending is truly necessary, it should be funded through transparent, progressive taxation, so that it only affects those who can afford to pay the tax, and so that the voting public is aware of it. Unforunately, you're unlikely to win an election on the promise of raising taxes. The hidden tax of inflation, on the other hand, is so perfectly hidden in plain sight that most people don't notice it unless it gets out of hand.