Thread by @wgoggin

The new mainstream macro consensus is that deficit spending makes sense now: we can “go big” and borrow because interest rates are low. And, while the public debt is not an issue now, it could be long term.

Only one problem: like the old consensus, the new one is pure bullshit.

Long time deficit hawks, including Fed chairs and Treasury Secretaries, pat themselves on the back to growing accolades of supporters.

But, like most of mainstream macro, the consensus and its broad acceptance is downright embarrassing and detrimental to the nation’s future.

Nothing epitomizes this embarrassing state of affairs quite like a former Fed chair and current Treasury secretary “losing sleep” over the public debt.

Mindless nonsense like this is red meat to those who would shut down deficit spending for public purpose as soon as possible.

A public official wringing hands over the public debt provides fodder for those enamored of debt clocks, as count-down warnings of the nation’s impending doom, when in fact they measure the nation’s savings account.

It’s a sad unmistakeable sign that our leaders are clueless.

What could be worse, as a nation with existential challenges faces growing resistance to desperately needed, expanded, long term deficit spending, than false pontifications about the long run danger of public debt?

From supposedly expert leaders who don’t know wtf it really is?

The public and policymakers can be excused for being misled by this nonsense.

But, if you’re an economist, and still believe, preach, teach, and behave as if the U.S. government must borrow the dollars it creates in order to spend, you should be ashamed.

Educate yourself ffs.

As short and sweet as it gets: