Saturday, September 10, 2011

Paul Krugman and the middle class taxed further

The problem with Paul Krugman, although he may come up with nice pieces once in a while, is that he is obsessed with government spending and deficit financing to create growth and jobs. Wonder if he can look beyond the deficit and see who will finance this deficit? Banks and not donors. Will the banks give subsidized interest rates below the risk free interest rate? No. Can banks lending to governments be considered as public deposits with zero rate of interest? Why not? A kind of compusory current account as part of the cost of doing business.
If not, why should the public be collectively taking loans which individually they would not like to do? Why should people be collectively spending on goods like arms which individually they would not like to buy? Why should our kids be paying for jobs which our neighbours don't want to do for purchasing goods and services which nobody really wants.

I'm just a public financial analyst, at best, raising questions that need to be solved by a new political party.

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