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Politics : American Presidential Politics and foreign affairs -- Ignore unavailable to you. Want to Upgrade?


To: TimF who wrote (44962)8/19/2010 12:16:41 PM
From: DuckTapeSunroof  Respond to of 71588
 
Re: "The borrowing is itself a cost to the extent it causes crowding out. It isn't the interest cost itself, but its the cause of the interest cost."

I believe I already said both things.

That federal deficit borrowing has a crowding-out effect negatively affecting business' access to capital (thus affecting growth) and also that interest costs on federal borrowing are themselves a direct cost in the budget....