Friday, October 26, 2012

Derek Thompson — The Dirty Secret of Debt-Hating CEOs: They Need Big Deficits to Live

The big red gash you see at the far right? That's the contribution of government borrowing to corporate profit margins since the recession hit.

The Atlantic
The Dirty Secret of Debt-Hating CEOs: They Need Big Deficits to Live
Derek Thompson | Senior Editor, Business
(h/t Stephen Ewald via Twitter)

9 comments:

Matt Franko said...

Checkmate...

widmerpool said...

So all those great points and then...

"In the long-run, fiscal responsibility is a virtue and tall deficits are an overdose of very strong medicine."

It's so bizarre. All these journos do this whenever they pen a pro-deficit piece.

Maybe they are afraid the Peter Peterson Foundation will come knocking on their door.

paul meli said...

Well, if we just cut taxes more on the rich while cutting spending the C's will be fine. They won't even have to bother producing products for customers they won't have anyway.

Broll The American said...

@Paul - But they are "job creators" and by the divine benevolence of their species we will all prosper. So we must sacrifice Medicare and SS and FICA tax suspension on their alter to appease them.

I hope the sarcasm was sufficiently dripping off this one. ;)

mike norman said...

Meanwhile, read this: 80 top CEOs tell Obama, Romney, to slash social spending.

Matt Franko said...

Saw that too Mike... it would be interesting to create a custom portfolio where you went short these 80 companies and went long the rest.... rsp,

paul meli said...

"I hope the sarcasm was sufficiently dripping off this one. ;)"

It would be difficult to say anything that wasn't sarcastic or was too sarcastic when talikng about those morons.

Tom Hickey said...

What they don't seem to get is that austerity for the masses will increase their saving rate to prepare for an uncertain future. That means a much smaller domestic economy. It's the Chinese disease.

Or maybe they do, and I think that this is actually the correct answer. The only way they can prosper is through the US becoming a net exporter and that is in fact their plan. They see that growth in the US is lagging growth in the emerging countries and they are moving their ops there. The only domestic strength the US economy will retain is the military-industrial complex and possibly finance although I suspect that most multinationals and financial giants will be relocating their HQ's to low tax and no reg countries.

Ordinary Americans will be left to fend for themselves — growing number of dogs and a decreasing number of bones.

paul meli said...

"Ordinary Americans"

312 effing milion of us…