THE BURDEN WE LEAVE OUR GRANDCHILDREN….

If you hadn’t noticed over the course of the last few weeks, Paul Krugman appears to be making a move closer to the Modern Monetary Realism position that government debt is not something that constrains a government in the same way that it constrains a household. He writes:

“People think of debt’s role in the economy as if it were the same as what debt means for an individual: there’s a lot of money you have to pay to someone else. But that’s all wrong; the debt we create is basically money we owe to ourselves, and the burden it imposes does not involve a real transfer of resources.” Read more....