Gerry Canavan

the smartest kid on earth

Money for Nothing

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The United States government can currently borrow at a -0.34% yield, meaning we’d actually have to pay back less money than we borrow after adjusting for inflation. It’s literally free money. Meanwhile we have a deep recession, high unemployment, and tons of important infrastructure work that needs to be done. This is the whole reason national debts exist in the first place.

I have no idea what the White House could possibly be thinking. Cutting government spending in this context makes absolutely no sense. We should be borrowing like crazy. Here’s Ezra:

The path forward is obvious: We should borrow now and put in place a firm plan to cut deficits later, once the economy is back on track and investors have other places to put their money. But refusing better-than-free money now in order to talk about reducing our deficit later? Well, that may be the craziest sentence I’ve ever had to include in a column.

Written by gerrycanavan

August 30, 2011 at 2:13 pm

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