No.
Federal debt is not the problem. It is a consequence of the problem.
The problem is EXCESSIVE PRIVATE SECTOR DEBT.
Here's the relationship between private and public debt:
Reducing the federal debt makes the line go up, where you get depressions and such.
Reducing private sector debt makes the line go down, where good times begin.
This page:
https://econcrit.blogspot.com/2023/04/will-refusing-to-increase-debt-ceiling.html
For the XLS file see
https://www.dropbox.com/s/fctxqugozw0p4zk/P2P%20Update%20%281916-2021%29%20by%20the%20Arthurian.xls?dl=0
1 comment:
Paul Winfree of the Heritage Foundation says "Congress should reject Biden's bid and instead use the debt limit to strengthen the economy."
But look at my graph. Limiting the growth of federal debt DOES NOT strengthen the economy. To strengthen the economy, the growth of debt OTHER THAN FEDERAL must be limited.
There are two ways to lower the P2P ratio shown on the graph: by increasing the federal debt, or by reducing everyone else's debt. I am NOT saying we should increase the federal debt. I am saying we must reduce everyone else's debt.
There are no other options.
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