Days of Change

Debt-icit

October 11, 2014
2 Comments

So, I’m not going to bother linking to Paul Krugman’s latest Obama cheer about lower deficits. It’s all boiler-plate Krugman anyway. Deficits are good, debt is good and the Republicans are hypocrites because they wanted lower deficits, the deficits are lower and Obamacare is to thank for this. I could go on to refute all of the Obamacare crap, but he linked to vox.com, so I can’t even dignify that with a response.

Since Krugman’s article was also number-free, I won’t bother with proving the figures wrong, since this really isn’t the point. The point is that he left debt out of the discussion. Krugman usually loves to talk about debt. He has stated multiple times that debt can be up to 200% of GDP (think Japan’s lost decade) before it will impact the economy. It is well over 100% right now in the US. If you think the debt doesn’t matter, let me quote someone who does.

The problem is, is that the way Bush has done it over the last eight years is to take out a credit card from the Bank of China in the name of our children, driving up the national debt from 5 trillion for the first 42 presidents — number 43 added 4 trillion dollars by his lonesome, so that we now have 9 trillion dollars of debt that we are going to have to pay back — $30,000 for every man, woman and child. That’s irresponsible. It’s unpatriotic.

Obama complained in Bush’s eighth year that he nearly doubled the national debt from his predecessor. In just over six years, Obama has more than doubled the national debt. Krugman accidentally made one point. 18 trillion dollars is responsible for over $700 billion of the deficit as the amount we have to pay in interest on the national debt. We would have no deficit if the national debt wasn’t so sky-high.

That’s the dirty little secret here. The trillion-dollar stimulus was not a jump-start to the economy, (not if it took six years) but a way to stymie deficit hawks by front loading our total debt. Using the credit card analogy, Obama maxed out his credit card in 2009 and made the minimum payments with his cash advance. Now Krugman is kissing Obama’s ass because he puts less on his credit card than he did earlier.

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