Politicus USA has the article Bernie Sanders Storms The Senate and Rips The Republican Rich Get Richer Budget.

Here is the YouTube video they feature.

The key is a full employment economy as Sanders mentions at the end of his remarks. If we have that, then the Government has done its job. The debt and deficit will be whatever they are, but, for the case of the USA, it doesn’t much matter what they are. The debt and deficit are not a measure that is related to the economic health of this country as directly as is the employment level and the living standards of the middle-class.

I am sure that with Sanders’ appointment of Stephanie Kelton as his chief economist on this committee, he is fully aware of how little importance the debt and deficit are for a country like the USA that is sovereign in its own currency. I wish he had the courage to either explain this more thoroughly or to at least stop talking as if these two measures were as important as the Republicans pretend that they are.

When the Federal government runs a deficit that is larger than our trade deficit, it is pumping net wealth into the private sector. When it runs a deficit lower than the trade deficit, it is sucking wealth out of the private sector. This is just simple arithmetic that is not changed by ones’ ideology.

When people understand this simple arithmetic, then they can decide on policy that is good for the country. If you get the arithmetic wrong, then you have no business deciding the federal government budget.

See my previous post The Truth About The Deficit for the very simple equation that cannot be denied and the one that explains my above statements about the debt and deficit. I just cannot see how people can accept the reality of these equations, but deny the logical conclusion of what they mean.