The deficit doesn’t matter

The Christian Century has the article The deficit doesn’t matter: Thinking morally about the economy with Stephanie Kelton.

Daniel: I don’t want to overly psychologize politicians’ motives, but how genuine do you think the concern about the deficit is when there’s so much flip-flopping?

Kelton: It’s not at all and everybody knows it. They do not care. And they are right not to care. What concerns me, honestly, is that the Democrats are going to make their persistent message that Republicans are hypocrites when it comes to the deficit but that they had it right when they were hysterical about it. That is not where I would like to see the party end up. I would much rather see the party go, “You know what? The Republicans have said it’s okay to add $1.5 trillion to the deficit over the next 10 years as long as we’re doing it for a good reason.” Take that. It’s a gift. Take that gift and say, “Look, you’re willing to do $1.5 trillion. We’re willing to do $1.5 trillion. But you’re making your check paid to the order of big wealthy corporations and the richest people in this country. Let me show you how we’re going to write our checks for $1.5 trillion—this is where a moral vision is crucial. Our checks are going to go the poor, the struggling, and the people with no healthcare. We’re going to do this with our $1.5 trillion.”

Stephanie Kelton does her usual excellent job of explaining economics. Her explanation is not as simple as the deficit doesn’t matter. Instead she explains how and when it does matter as opposed to when it doesn’t matter.

There are just a wealth of economic insights in the article. Please read it. Stephanie Kelton is a teacher who can really make complicated things easy to understand.

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