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To: SeekAndFind
I actually carefully read and parsed the original NYT article. What Krugman says is technically correct, but misleading and needs to huge caveats.

What he says if boiled down is that when interest rates are at an all time low, borrowing money for needed and useful infrastructure investment is a good idea. Correct, but only if (1) the investments have long term value and useful lives that exceed the term of the bonds, and that you can actually afford the investments on top of all other government expenditures.

What he did not say and should have also was that borrowing money for things that aren't long term useful capital projects, like funding public employee pension funds, or social welfare programs is exceptionally stupid.

However, the NYT article and many liberals don't want to pay close attention to the “details” they just want to focus on Debt is Good lets borrow and spend like drunken sailors.

25 posted on 08/22/2015 12:13:09 PM PDT by Robert357 (D.Rather "Hoist with his own petard!" www.freerepublic.com/focus/f-news/1223916/posts)
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To: Robert357

There is another thing left out. That government debt is rarely paid off. So when rates rise, debt rises. So there should be no correlation between low rates and the governments borrowing. Unless the government plans to hold rates down forever, borrowing (all spending) should be a factor of public value, not current interest rates.


35 posted on 08/22/2015 12:31:14 PM PDT by poinq
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