When you get calls from your friends specifically to talk about their zany ideas on how to reduce the national debt you know that the bailouts are beginning to eat at people.
The very rough numbers: 3 trillion dollar budget, 1 trillion dollar deficit, and a 10.6 trillion dollar national debt, growing at 3.65 billion per day. Americans are starting to believe that we’ll never be able to pay it off. Perhaps they’re right.
Given the nod from Keynesian economists that believe it’s necessary to spend your way out of a recession and possible deflation, the Dems have their New Deal plan to offer. Beyond the fact that it didn’t work in the 30s, there’s a huge difference between today’s financial environment and that of the 1930s. We don’t have the relatively closed system that Roosevelt had. Devaluing our dollar further will only cause investors to choose the 4.5% ROI of developing countries over the 2.5% U.S. return.
The Center for Freedom and Prosperity has a new video explaining why such Keynesian ideas don’t work.