Tuesday, November 29, 2005

Do Lies help?

"If you are alarmed at $8 trillion debt in a $12 trillion economy, what would you think of $80 trillion debt in a $120 trillion economy? In an economy like that, would these young kids you’re scaring today be better off or worse off? Why?"

Why indeed. But here's the thing Steve -- even though I deplore politicians stretching the truth and painting false pictures -- I really do believe that making the government spending a smaller fraction of the economy will cause improved economic growth. (see graph below), and you've talked many times before about how important that is for our nation's financial health. So though I don't like the dishonest distortions about impending fiscal doom, I harbor some hope that the fear-mongering might lead to smaller/smarter federal spending.

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