by John Rubino
As Washington borrows and spends to keep the pandemic lockdown from turning into a Greater Depression, federal government debt is approaching the same percentage of GDP as during WW II. This is a nice journalistic hook, especially because the story – as told by the typical reporter – has a happy ending: Yes, we borrowed a lot of money to win the war, but then we boomed in the 1950s and paid off the debt, no harm no foul. So don’t worry, with the right interest rate and trade policies, we’ll manage our current debts just as easily.
Here’s an excerpt from a recent NY Times article observing that even people who normally worry about government debt have concluded that massive deficits are now okay: