4/24/2011

Fiscal Crisis: Don't Worry, Be Happy!

Over at Ricochet Claire Berlinski introduces us to the 'Don't Worry, Be Happy' approach to the looming fiscal crisis:
Why Anarchist Anthropologists Shouldn't Make Economic Policy

Anarchist anthropologist David Graeber explains why we needn't worry about deficit spending in the New York Daily News. It's all wrong to imagine that governments, like households, must be concerned by debt, he argues. Why? Five reasons:

1. Households can't levy taxes.
2. When households owe money, they owe it to other people. The U.S. debt is owed mainly to ourselves.
3. When households owe money to other people, they can't just print it. The government can.
4. When someone in your household writes a check, the recipient tends to cash it. Not so when the U.S. sells Treasury bonds to banks in Brazil or China.
5. If a household doesn't pay its debts, creditors can take them to court or call the cops. Internationally, we are the cops.

Feel reassured now?
I know I do!

So....Graeber's main argument is that we have nothing to worry about because Government budgets are nothing like family budgets? If you think that is looney, don't read his OpEd any further, or you will run into amazing logic such as this:
"A major reason the U.S. has a deficit to begin with is that we spend more on our military than all other nations in the world combined."
and this:
"Most probably know that if we ever really did balance the budget, it would likely throw our economy into a tailspin."
OK...military spending bad...deficits good!

I hate to break it to you Daaaave, but even if President Obama zeroed-out the Defense budget in his 2012 budget proposal, he would only cut his deficit in half. You see the real-reason we have a deficit and climbing debt are not the discretionary spending, but the mandatory spending (SS, Medicare, Medicaid, Interest on the debt) which keep expanding and are of course "mandatory".

And I for one did not know that a balanced budget would throw our economy into a tailspin. I can't wait to read your sources and evidence.....oh wait, you didn't cite any. Shocking....

1 comment:

kevin21 said...

Canada Goose Jackets big subject new products both have the rare cutting edge idea, and tight fitting consumer's fashionable demand, impressive in the Bosideng way, product, localization original creation and novel. For many years, Gaud Kang JianHolds by the customer value guidance, by " National, fashion, future " For the emotion demand Moncler Jackets, strengthens the Bosideng brand culture cultivation and the product research and development design investment unceasingly, sought the subtle balance point esthetically in art with the market demand, has realized on the
stage gorgeous eye-catching and in the life scenery infinite Moncler Jackets, has created the extremely rich Chinese prevailing custom characteristic fashionable tidal current, also won in the world fashionable clothing scope for oneself the approval and the respect Canada Goose Jackets.
Gaud Kang indicated that Bosideng indicated sufficiently in T with the market in success, has the imagination creativity design to be able the achievement outstanding brand Moncler Jackets, has the fashion to guide the strength the brand to be able to become the pacemaker who clothing industry reforming promotes.Establishment four seasons product reforming strategy" Down clothing - - Bosideng - - clothing " , mentions " today; Down clothing " , the people naturally will think of " Bosideng " , Bosideng succeeds is occupying " Coldproof clothing king " This customer mental resources Canada Goose Parkas.
But as Chinese clothing category strategy actuation pattern outstanding representative, when Bosideng happiness also has the worry: The product seasonal characteristic is unitary, the market profit condition is Moncler Jackets For Men obvious the weather effect. Has " Creates the name brand, to promote education to serve the country " High ambition Gaud Kang obviously regarding this discontented, in recent years he impelled Bosideng to open up territory positively to the four seasons domain to develop the earth Moncler 2011.