To appreciate just how idiotic those who oppose Donald Trump are we have this that has just been sent to me: Learn to Stop Worrying and Love Debt. It’s by no less an authority than Paul Krugman who notoriously when asked when the stock market might turn up after the American election in 2016 replied, “If the question is when markets will recover, a first-pass answer is never.” Now we have this from the same authority:
The bottom line is that government debt just isn’t a major problem these days. Which brings us back to the politics.
Joe Biden has promised to “build back better,” a slogan that translates into proposals to spend big sums on infrastructure, climate policy, education and more, largely with borrowed money. And that’s very much the right thing to do; business may see only limited returns to investment, but we’re in desperate need of more public investment, broadly defined (for example, including spending on children).
So we will have Daniel Andrews as the American president. I might just supplement this with a post by Steve Hayward at Powerline discussing Modern Monetary Theory.
The hottest thing among leftist political economists is “Modern Monetary Theory” (MMT), which holds that a sovereign government can borrow and spend all the money it wants because it can’t actually default on its own currency. This warmed-over Keynesianism wouldn’t get anywhere except in a time of unusually low interest rates and very low inflation.
I’m not sure that the actual inflation rate is all that low, but interest rates are well below anything representing the actual opportunity cost of capital. Government spending is the new black (or perhaps the new red in both of the metaphorical senses of the word).
The thing that gets me about the bureaucracy voting left is that they only show how ignorant they are of anything that might make a community peaceful and prosperous. There is a lot of ruin in a nation, as Adam Smith once said. If Joe Biden (or Kamala Harris) makes it to the Oval Office we will get to see just how much ruin there really might be.
Nothing that has happened in the past four years has made me regret my support for Donald Trump in 2016. We shall see what fools like LIQ will have to say in 2024 should Joe actually get there.