Dinsy Ejotuz
Footballguy
I'd never seen this before, but it's the full(ish) argument by Paul Krugman making case that we're not spending enough given the post-2008 realities.
You don't have to agree with it, but if you're going to argue about the benefits and perils of deficit spending you should probably understand it.
Here's another argument along the same lines.
The counter arguments revolve mostly around how long this is feasible (until rates rise or long-term growth falls below interest rates), risks to the dollar's reserve status (probably low until there a viable replacement - note how speculative the article is framed and how everyone said the same things in 2008), and whether the US will be politically willing to adjust course when the time does come.
The last risk is the big one IMO. But we seem to be pretty far from that place today given how low interest rates are and the fact that demand for dollars is still so high.
Anyhow, worth a read if you feel really strongly about all this.
You don't have to agree with it, but if you're going to argue about the benefits and perils of deficit spending you should probably understand it.
Here's another argument along the same lines.
The counter arguments revolve mostly around how long this is feasible (until rates rise or long-term growth falls below interest rates), risks to the dollar's reserve status (probably low until there a viable replacement - note how speculative the article is framed and how everyone said the same things in 2008), and whether the US will be politically willing to adjust course when the time does come.
The last risk is the big one IMO. But we seem to be pretty far from that place today given how low interest rates are and the fact that demand for dollars is still so high.
Anyhow, worth a read if you feel really strongly about all this.
