Sure Cure for Debt Problems Is Economic Growth [Yeah, right! But…]

31 Jul

The super-rich: have got it figured out: How to keep their part of the economy, that part that feeds their bank accounts, growing. The neat thing is they can keep things growing in their back yard even when the overall economy is stagnant. Which means that,for the rest of us, the economy is shrinking. Back  in the old days, the economy grew for everybody: win-win. Now it grows for the rich, but not for us: win-lose.

And the rich don’t care. Why should they, they hardly even notice. Because it just doesn’t affect them.

“The basic issue is that the U.S. is on an unsustainable fiscal track,” says Dean Maki, the chief United States economist at Barclays Capital. “From that point, none of the choices are fun.” The most obvious choices, Mr. Maki says, are to reduce spending (ouch), raise taxes (yuck), let inflation run (gasp) or default (thud).

We wouldn’t need any of that if we could restore economic growth. If that happened, Americans would become richer and pay more taxes. Et voilà! — we’d pay down the debt painlessly.

via Sure Cure for Debt Problems Is Economic Growth – NYTimes.com.

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