This philosophy hinges on controlling Good Quality American Horror Story Shirt inflation. Also, not everything is sunshine and rainbows for the Japanese economy. Debt can be beneficial when it increases the rate of growth, but being indebted also increases risks. I mean, you want less debt to service ideally. Even if you aren’t a deficit hawk you want to be in a position where you can spend in a crisis, and in such a way that is most beneficial to the economy. Stagflation was due to a huge negative supply shock (ie oil shortages). We’re much more at risk for a deflationary spiral than stagflation or even regular high inflation.
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Nope, this is bunk analysis. Low interest on government debt means investors are demanding more US debt as a safe asset. Public investment is too low. It turns out every economist was wrong and inflation doesn’t exist, or it’s good, or something. They all decided this independently a few months ago. Tax cuts were nothing but pure greed and Good Quality American Horror Story Shirt everyone knew it. The economy was already in good shape and there was literally no reason for them. I did a quick back-of-the-envelope calculation and we would need to raise taxes by about 70% from where they are now to pay off the debt in 10 years.
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