Wednesday, January 29, 2014

Miscellaneous Perot: "for no reason"

Under the heading "How Did It Happen?" in Chapter One of Ross Perot's 1992 book United We Stand:

President Reagan had a reason for the deficit spending that occurred in his Administration. He wanted to bankrupt the Soviet Union, and he did it by accelerating the arms race. In the last several years, our debt has grown for no reason.

The thing that bothers me most in that quote is the last bit of it: "In the last several years, our debt has grown for no reason."

Debt doesn't grow for no reason. The Federal debt, I mean. What Perot was writing about. The Federal debt grows because there is some impediment that hinders the normal growth of the private economy.

The Federal debt grows because something is interfering with economic growth. Looking at it that way, you can see that Federal debt growth is a result of failing private-sector growth. That is to say, the Federal debt is a result, not a cause of the decline of economic growth.

Gee willikers, it's not Federal debt that hinders growth. It's all the other debt.

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