Wednesday, December 26, 2012

Ezra Klein is Economically Illiterate

Did you ever read an article and then come across a line or two that you so fundamentally disagree with that you stop reading at that point?  I just did that in this column by Ezra Klein.  Here is the offending text:
The point of austerity is to solve a deficit problem ... The Bush tax cuts, which were passed to pay down a surplus, should be rescinded now that deficits have returned.
My take is that there is no "deficit problem".  The deficit in and of itself doesn't hurt anyone.  In fact, most Keynesians (which most Democrats are to some degree) think the deficit is too small at the current time, exactly the opposite of what Klein is saying here!

Our current problem is high unemployment, not inflation.  Excessive deficits are inflationary.  We have an unemployment problem, not a deficit problem. I see no point in continuing to read the article when the author so fundamentally misinterprets the current state of the economy...


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