The deficit has just surpassed $1 trillion. Actually, $1.033T as of September 5.
This is the largest deficit in 7 years and the largest as a percentage of GDP in 7 years as well. (4.8% of GDP.)
The deficit has experienced a rapid escalation in the past 2 years.
I don't hear any cheering from the MMT gods about this.
And Mosler is still bearish.
Its still too small we need even more savings to make it even larger...
ReplyDeleteThen with people saving even more then the economic activity should accelerate...
:p
Hahahahahaha
ReplyDeleteOf course, HOW a deficit is produced matters.
ReplyDeleteTax cuts for the rich are unlikely to increase their consumption or their investment if the general population has been driven into debt by, say, a government-privileged usury cartel - as it has been - and can't consume the products of new investment.
Otoh, an increase in Federal payments to the non-rich and/or a cut in their taxes should boost the real economy.
Under unemployment still huge.
ReplyDeleteSkills deficiencies ... and substance abuse... many young vets of the gwot under ptsd.. JG isn’t going to “fix” this... we should just give them munnie ...
ReplyDelete