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View Diary: Bill O’Reilly Gets Smacked By Economics Professor - Nanny States Actually Do Better (VIDEO) (82 comments)

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  •  I love the article but in order for we (19+ / 0-)

    progressives to fight the right successfully........we must get our facts right.
    "When we raised taxes to balance our budget the economy was much more robust."
    Balancing a budget has nothing to do with making an economy more robust.  A budget might get balanced when the economy is growing rapidly but we have to get the causality right.
    The budget deficit should always be seen in the context of the national economy.  There are 3 sectors to the economy: domestic, foreign, govt.
    Just like in double entry accounting: one sectors spending is another's income.  They can't all be in deficit or surplus at the same time.  If the rest of the world is running a trade surplus with us (our trade deficit) and our domestic private sector (households and businesses) want to net save Dollars (like they almost always want to)  Then the Govt MUST run a deficit to balance that, otherwise we will have a recession.

    MMT= Reality

    "The Earth is my country and Science my religion" Christiaan Huygens

    by Auburn Parks on Tue Mar 26, 2013 at 05:05:37 AM PDT

    •  You are absolutely correct. It was not (5+ / 0-)
      Recommended by:
      cybersaur, puakev, expatjourno, Aunt Pat, jm214

      my intent to deny that fact though the way it was written it could have been interpreted that way. I have written about that before. Thanks for reading my friend.

      •  No worries.....My comment wasn't even necessarily (0+ / 0-)

        directed at you, just an opportunity to put that out there.  Its just vital that more people understand these things.  The right feeds on ignorance....its the only way they can be successful.  If elected Dems (and the rest of us who vote for them) don't understand the foundational point that the US dollar comes from the US govt, then they sound weak.  When Dems repeat the gold standard line about the US "borrowing" its OWN FIAT CURRENCY...they only perpetuate the myth, making us all worse off.

        Great piece.

        "The Earth is my country and Science my religion" Christiaan Huygens

        by Auburn Parks on Tue Mar 26, 2013 at 03:03:48 PM PDT

        [ Parent ]

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