For some, deficit OK for war, not for helping

It is irresponsible to suggest that the best way for America to get rid of its deficit is to declare bankruptcy, as economists Scott Beaulier and Peter Boettke wrote in their Nov. 19 column. “Debts would be erased once and for all,” they say. Think of the consequences. Treasury bonds and other government instruments that individuals and pension funds hold would become worthless. Our situation is nowhere near that dire.

Paul Krugman, one of America's most noted economists, recently wrote: “It's truly amazing, and depressing, how completely deficit-phobia has swept the field in Washington. The economy remains in deeply dire straits, yet the respectable thing all of a sudden is to claim that we can't possibly afford to spend any more money on job creation. ... Other advanced countries have been substantially deeper in debt without either defaulting or having runaway inflation.”

He continues: “I'd be a little more forgiving of the nonsense if all the people screaming about the deficit were sincere. ... But many are perfectly happy to incur huge unfunded liabilities for the wars they want to fight, and/or to eliminate inheritance taxes for heirs of multimillionaires. It's only deficits incurred to help working Americans that get them all moralistic. The point is the economy desperately needs more help - and yes, we can afford to provide it.”

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Brian Ochs

Marion