Some things cannot be said often enough. Excessive private debt is the problem.
Sometimes I say excessive private debt is the problem.
Sometimes I say excessive total debt is the problem.
Which is it, Art?
The problem is not the Federal debt. The Federal debt is not the problem. Everybody is focused on the Federal debt, and nobody can solve the problem, because the Federal debt is not the problem.
So, I always say: Private debt is the problem.
Pretty soon, maybe, the people who focus on the Federal debt will open their eyes and see that the Federal debt is not the problem. And then they too will say that private debt is the problem.
As soon as that happens, I will always say: Yes, but total debt is the problem.
There is too much political capital invested in the federal-debt-is-the-problem meme for those eyes to ever open.
ReplyDeletePolitics and economics are like a pair of incestuous Siamese twins. That is why economics will never be a science.
Sadly,
JzB
I think you will be interested in this.
ReplyDeletehttp://edgeofthewest.wordpress.com/2012/02/14/alexander-field-greg-clark-and-optimism-about-the-current-unpleasantness/
Cheers!
JzB