After my post on The Truth About Austerity and hearing some great feedback from Peter in the comments, I deemed it necessary to dedicate a post to explaining the basics of public finance. We at Hans try to make basic economics accessible to all readers, so I will aim to keep it simple and limit…
Paul Krugman implies that deficit spending is necessary to jumpstart a floundering economy, and in the process repeats the well-known “we owe it to ourselves” fallacy about public debt in his latest piece.
The implication of the “we owe the debt to ourselves” fallacy is that debt isn’t all that harmful or distortionary because, after…
