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View Diary: The Great Depression Pt. IV (187 comments)

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  •  US debt does need to get paid off. (5+ / 0-)
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    Sparhawk, opinionated, Pozzo, 4Freedom, ColoTim

    A reactionary flaw in the diary is that it advocates forever increasing the US debt. FDR prudence in following Keynesian theory, borrow in recession and pay off borrowing during boom, was correct.

    Currently JUST THE INTEREST on the Reagan/Bush debt, run up over the last 25 years of Reagan Republican power, is 13% of the Federal Budget.

    As Clinton demonstrated from 1992-2000, we can pay have budget surpluses to pay down the debt and not have recessions. Debt/GDP was 33% in 1981, lowest in post-WWII era of paying down the WWII debt. It rose to 60% during Reagan/Bush term, declined to 50% range during Clinton's term and then back to 70% range during Bush Jr's disastrous term.

    Part of the economic plan has to be to set benchmarks so that in two years when US economy is out of recession we do start running budget surpluses and paying down the debt. Long term economic health requires it.

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