Alexandria Ocasio-Cortez posted on Facebook about the Financial Times article Fiscal hawks’ tales of doom do not fly with the young.
Her is an excerpt from her post.
Ever notice how the “how do you pay for it” argument is selectively employed against working class benefits?
I started reading the article itself. Here is something they failed to adequately debunk.
A prime example of this can be found in the warnings from some fiscal hawks about how financial markets would be overwhelmed by the wave of government bonds needed to fund the stimulus.
In debunking this the Financial Times fails to point out that these bonds, which are required by law but not required to “finance” the stimulus, actually cancels out the stimulative and inflationary impact of the package. In order to get am actual and full stimulus, the Fed would have to buy all the bonds. In other words, one arm of the government would have to buy all the bonds sold by another arm of the government.