Saturday, April 04, 2009
It's the children he's worried about
They are going to be left with a lot of debt, he says
This isn't true, as the Treasury and myself among others have made clear.
Now in the US, economics professor Nancy Folbre uses an analogy:
"Think of the United States economy as a family farm in need of modernization. Energy prices are going up, but all the tractors are gas guzzlers. Some of our fields have accumulated toxic levels of pesticide, and we need to develop new and better technologies of sustainable production. Our grandchildren want to run the farm, but will need good health and a college education to do it well.
Spending money on increased energy efficiency, research and development, health, and education could increase the value of their assets, helping them repay debt.
In other words, the 'mommy party' wants to borrow money to help the kids, not to hurt them. Keynes, history and environmental concerns lend credence, though not certainty, to this plan."