09
Jan
2012
My FreedomWatch Appearance
Next week, Glenn Beck is going to have me on his show for a full segment to walk his viewers through my 9-period apple model. (Of course that’s a joke.)
I just watched this for the first time. I was worried that maybe I would have said something a little imprecise, since (a) it’s a TV interview and (b) we taped this last week, when my understanding had not advanced to its present Olympian levels. But, at least regarding the Krugman stuff in the beginning, I agree with every word I said.
Just for the record, while I agree with Bob on the burden of the debt, there can nevertheless be good reasons to run a deficit, especially in the US at times like this. If government deficit spending is used to finance investment, the benefits of those investments to future generations can exceed the costs. And if it helps get the economy out of a recession, the benefits to future generations might also exceed the costs. And if the interest rate is below the growth rate, there might be no future tax burden.
There are two sides to this choice. Benefits as well as costs. We always need to look at both.
I totally agree Nick. If kicking myself in the crotch brought more benefits than costs, then I would do it. But let’s not lose sight of the costs.
Yes, totally, like when the government invested in solyndra. No, wait, that’s not a good example.
Except that there’s no way for a central institution to know what are sound investments for the economy in general. The chance is almost infinitely greater that the government will cause more incorrect allocation of resources than actually facilitate lasting living standards.
And that not even taking in consideration the fact that most politicians rather cater to special interests than what is best for the biggest amount of people.
What is funny is how people with PhD’s in economics, who only consume non renewable resources that will not be available for future generations whilst producing nothing at all, understand so little about the monetary system and spread ignorance in the media.
Funny ha ha? Or sad funny?
Funny ha ha, sadly.
“Government starving, not getting enough revenue. Poor little government. That’s just crazy.”
LOL. Made me laugh Bob. Thanks.