Unbroke America/ Paul Krugman

By Paul Krugman

Unbroke America

It really is worth repeating: no matter how much the right-wingers may like to claim that the US government is “broke”, it’s not, in any normal sense of the term. Investors, putting real money on the line, are willing to lend funds to the Feds long-term at an inflation-adjusted interest rate of only 1 percent. There is nothing in the markets or the cash flow requiring immediate austerity.

Yes, there is a long-run problem — but this requires long-run solutions. Slashing spending now now now is neither necessary nor helpful.