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View Diary: Krugman: After the Flimflam (100 comments)

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  •  Apaprently, they don't have to adopt a (0+ / 0-)

    budget. That seems to be an in-house requirement. I think the last three Congresses have not agreed on one and have gone with continuing resolutions and ad hoc appropriations.

    The balanced budget is a gimmick which Democrats have been pushing as if the national government were under the same restrictions as the states -- having to collect revenues or borrowings before they can spend. As the issuer of currency, the national body is under a different regime. The national body issues first and then collects. That sequences can't simply be reversed does not seem to register with people whose sense of time is deficient.

    One can spend what one does not have when one can make it on the spot. The llama can spit without having to take a drink.

    We organize governments to deliver services and prevent abuse.

    by hannah on Fri Mar 15, 2013 at 05:59:39 AM PDT

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    •  Yes, a balance budget amendment is a gimmick (0+ / 0-)

      It is almost like Mr. Wastrel promising not to spend too much.

      Instead of a mere promise of balance, the President and members of Congress with more than ten years of service should forever lose their jobs 30 days after the end of any fiscal year that does not end in the black.

      •  Let's say you're in the business of producing (0+ / 0-)

        nails rather than dollars. Why would you want to have nails left over at the end of the year?

        Or, if you're selling drinks in returnable bottles, would you limit production to those that are returned and can be refilled?  The nation is different from every other public and private corporation and all households, because it is the issuer of currency. What the countries in the Eurozone have done is follow the example of the several United States in adopting a common currency. Some, specifically Greece and Italy and Spain are already starting to regret giving up their autonomy for the convenience of not having to worry about exchange rates when they go on holiday.

        We organize governments to deliver services and prevent abuse.

        by hannah on Fri Mar 15, 2013 at 01:57:28 PM PDT

        [ Parent ]

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