“For a long period of time, elites thought that debt was the greatest threat to the US economy,” says @PaulKrugman. “Now I think we’ve largely come around to the correct view, which is that debt is just not a serious problem for the United States currently.”
In our podcast, Krugman gave a three-part test for what needs to be paid for, and how:
-Actual investments can be deficit financed
-Modest social spending can be paid for by taxing the rich
- Really big stuff, like Medicare for All, needs fuller financing
-Actual investments can be deficit financed
-Modest social spending can be paid for by taxing the rich
- Really big stuff, like Medicare for All, needs fuller financing
All the 2020 Democrats right now — to say nothing of Pelosi and the congressional Dems — are operating in a PayGo framework, where everything needs to be paid for. Krugman thinks that's a mistake, and if it ever reflected economic reality, it doesn't now.
Much, much more in our podcast convo. Enjoy! podcasts.apple.com/ca/podcast/pau…
