{"id":11333,"date":"2015-08-21T16:42:35","date_gmt":"2015-08-21T21:42:35","guid":{"rendered":"http:\/\/olduvai.ca\/?p=11333"},"modified":"2015-08-21T16:42:35","modified_gmt":"2015-08-21T21:42:35","slug":"paul-krugman-what-ails-the-world-right-now-is-that-governments-arent-deep-enough-in-debt","status":"publish","type":"post","link":"https:\/\/olduvai.ca\/?p=11333","title":{"rendered":"Paul Krugman &#8220;What Ails The World Right Now Is That Governments Aren\u2019t Deep Enough In Debt&#8221;"},"content":{"rendered":"<h3 class=\"title\"><a href=\"http:\/\/www.zerohedge.com\/news\/2015-08-21\/paul-krugman-what-ails-world-right-now-governments-aren\u2019t-deep-enough-debt\" target=\"_blank\">Paul Krugman &#8220;What Ails The World Right Now Is That Governments Aren\u2019t Deep Enough In Debt&#8221;<\/a><\/h3>\n<p>This was\u00a0<a href=\"http:\/\/www.nytimes.com\/2015\/08\/21\/opinion\/paul-krugman-debt-is-good-for-the-economy.html?_r=1\">written by a Nobel prize winning economist\u00a0<\/a>without a trace or sarcasm, irony or humor. It is excerpted, and presented without commentary.<\/p>\n<p><em>From the\u00a0<a href=\"http:\/\/www.nytimes.com\/2015\/08\/21\/opinion\/paul-krugman-debt-is-good-for-the-economy.html?_r=1\">NYT<\/a>:<\/em><\/p>\n<p><strong>Debt Is Good<\/strong><\/p>\n<p>&#8230; the point simply that public debt isn\u2019t as bad as legend has it? Or can government debt actually be a good thing?<\/p>\n<p>Believe it or not, many economists argue that the economy needs a sufficient amount of public debt out there to function well. And how much is sufficient?\u00a0<strong>Maybe more than we currently have<\/strong>. That is, there\u2019s a reasonable argument to be made that part of\u00a0<strong>what ails the world economy right now is that governments aren\u2019t deep enough in debt.<\/strong><\/p>\n<p>I know that may sound crazy. After all, we\u2019ve spent much of the past five or six years in a state of fiscal panic, with all the Very Serious People declaring that we must slash deficits and reduce debt now now now or we\u2019ll turn into Greece, Greece I tell you.<\/p>\n<p>But the power of the deficit scolds was always a triumph of ideology over evidence,\u00a0<strong>and a growing number of genuinely serious people \u2014 most recently Narayana Kocherlakota, the departing president of the Minneapolis Fed \u2014 are making the case that we need more, not less, government debt.<\/strong><\/p>\n<p>Why?<\/p>\n<p>One answer is that\u00a0<strong>issuing debt is a way to pay for useful things, and we should do more of that when the price is right.<\/strong>The United States suffers from obvious deficiencies in roads, rails, water systems and more; meanwhile, the federal government can borrow at historically low interest rates. So this is a very good time to be borrowing and investing in the future, and a very bad time for what has actually happened: an unprecedented decline in public construction spending adjusted for population growth and inflation.<\/p>\n<p>&#8230;click on the above link to read the rest of the article&#8230;<\/p>\n<p>&nbsp;<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Paul Krugman &#8220;What Ails The World Right Now Is That Governments Aren\u2019t Deep Enough In Debt&#8221; This was\u00a0written by a Nobel prize winning economist\u00a0without a trace or sarcasm, irony or humor. It is excerpted, and presented without commentary. From the\u00a0NYT: Debt Is Good &#8230; the point simply that public debt isn\u2019t as bad as legend [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[2],"tags":[380,1921,614,4318],"class_list":["post-11333","post","type-post","status-publish","format-standard","hentry","category-economics","tag-government-debt","tag-new-york-times","tag-paul-krugman","tag-zerohedge"],"_links":{"self":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/11333","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=11333"}],"version-history":[{"count":1,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/11333\/revisions"}],"predecessor-version":[{"id":11334,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/11333\/revisions\/11334"}],"wp:attachment":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=11333"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=11333"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=11333"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}