Deficit Politics In A Nutshell

Republican economists like to quote Milton Friedman:

Inflation is always and everywhere a monetary phenomenon.

I submit that the following is more truthful:

Government deficits are always and everywhere a political phenomenon.

Depending on which interests control the debate in a particular society, conventional wisdom will hold that deficits are either benign or apocalyptic.  In the United States, the corporate media takes its cues on this issue from the Republican Party. 

The corporate right-wing wants to roll back the New Deal in order to make it easier for economic elites to run the country as they see fit.  Republican politicians are their employees.  Fear of the deficit is used to manipulate voters into supporting policies designed to dismantle the government programs that mitigate the inequities of unchecked capitalism.

Thus endeth the lesson.

(From my blog



Tags: capitalism, Republicans, New Deal, oligarchy, Deficits (all tags)


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