a) That's not correct about the UK.
b) Whether you pay your mortgage or not, macroeconomics doesn't work the same way. That's because you don't print the dollars you borrowed, and the government does. The dangers created by the government are: inflation due to money creation, AS WELL AS DEFLATION, when they overcharge the taxpayer and "retire" the dollars. The American economy has been in danger of DEFLATION for over 5 years, not INFLATION. The reason is that Clinton got stopped in his efforts to spend us broke-like his Democrat predecessors always tried to do (and Johnson almost succeeded in doing). But he retained enough political clout to prevent the tax reductions that are critical to preventing the deflation. Thus the Clinton recession, that GWB is gradually digging us out of.
What's needed for a healthy economy today is the elimination of taxes on capital formation: capital gains, interest, dividends, corporate taxes, and estate taxes. The effects would be enhanced by a significant reduction-even elimination of that which our federal government engages in illegally, including Social Security, Medicare, and most "regulation", which is nothing more than bureaucratic featherbedding at the expense of the private sector. Finally, the disempowerment of the parasite tort lawyers, who eat away at the rule of law like a cancer and suck the financial blood of every citizen.
That, and not phony "debt reduction" is the key to an economy that can outgrow the debt... |
