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letsgetitdone's picture

The “Debt Crisis” According to Bruce Bartlett: Household Analogy, Inflation, Savings, and Taxes

In the first two parts of this series of commentaries on Bruce Bartlett's testimony to the Senate Budget Committee, I've reviewed the first 8 paragraphs in his statement. These points debunked various concerns of those who think the United States has a serious “debt crisis” it must handle before it takes on trivial problems such as its unprecedentedly high level of wealth inequality, lack of true full employment at a living wage, roughly 30 million people still lacking health insurance, one of the worst infrastructure systems in the developed world, transitioning from fossil fuels and ending climate change, creating a first class public educational system from pre-K through graduate school, ending the student loan crisis, creating a single standard of law for all, including the various categories of violators categorized as too big to prosecute by recent Administrations, and ending the student loan debt crisis, just to name a few.

However, what was noticeably missing from the variety of arguments given in his eight paragraphs was a recognition that the United States is a fiat sovereign nation and that this fact has serious implications for most of the subject matter Bruce Bartlett covers in his statement. In this post I'll continue my analysis of his statement to explore the extent to which his views correspond to Modern Money Theory (MMT). Read more about The “Debt Crisis” According to Bruce Bartlett: Household Analogy, Inflation, Savings, and Taxes

letsgetitdone's picture

Government Financial Asset Addition = “Deficit”; Government Financial Asset Destruction = “Surplus”

The word “deficit,” when applied to the Government financial accounting of a monetarily sovereign nation, that is, one that issues a non-convertible fiat currency, with a floating exchange rate, and no debts in a currency it doesn't issue, is a problem, because the label “deficit” when applied to such a Government doesn't mean what most people think it means. As Michel Hoexter points out: Read more about Government Financial Asset Addition = “Deficit”; Government Financial Asset Destruction = “Surplus”

Sarah's picture

Depression skillz -- who has them?

Take a hard look around you, boys and girls. The GOP is going to shut down GM if they can, and maybe Ford. How come? Autoworkers. Union labor. Kill the Big Three (Chrysler's already gone) and you can stamp out the next-to last vestiges of not-serfdom in the US.
"Clean coal" programs will, in all likelihood, lead us back to company towns. The middle class might be doomed -- but the skills of our grandparents, great-grandparents, and for those of us of a certain age, parents and selves might prevent our kids from suffering too much, if we gather them up and pass them on. Read more about Depression skillz -- who has them?

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