US Debt A 'Phantom Menace,' Krugman Argues

The hyperventilating over the budget "deficit," is a calculated strategy by forces on Wall Street, certain wealthy right wing upper one percent families and individuals (Rupert Murdoch, Richard Mellon Scaife, Charles G. Koch among others) and their dupes to push the United States into the final stages of what I call "free market" feudalism; i.e. an economic state in which the only legitimate function left for government is the police, the courts and the military, all other services now provided by government will be in the hands of "private" industry or nonexistent.



Krugman is right, the only solution to pull the US out of the current economic doldrum is a large dose of deficit spending. But since the Nineteen Eighties Republicans for the most part and so-called "deficit hawk" Democrats have increasingly tied any administration's hands from providing that remedy with so-called "balanced budget" legislation. The states are in worse financial shape as GOP dominated legislatures have pushed through "balanced budget" amendments.



One of the surest-fire methods to restore health and prosperity to the economy, besides a complete overhaul of the federal tax code, current skewed for the benefit of the wealthiest upper one per cent of the trust fund baby crowd, is a federal jobs program modeled after FDR's Civilian conservation Corps and the Works Projects Administration. It is far better, as John Maynard Kayne's said, for "The government should pay people to dig holes in the ground and then fill them up."
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