I get emails from a reader occasionally who supports someone named Mosler, an automobile magnate, for president. Here’s the latest:
In Defense of Deficits
Here is my response:
If you persist in treating this as a "macro" problem, you will guarantee a bad solution, whether it's excessive deficit spending or excessive fiscal tightness.
It's a distributional problem. There's enough to go around, it's just not going around.
The financiers will play a big deficit/inflation scenario the way they played the bubble--lever up and rip everyone else off.
You're barking up the wrong tree, just like they want you to.
Repeat: as long as you frame it as a "macro" problem, you will get a "macro" answer, and they're all clumsy, stupid and wrong.