MY COMMENT — While Professor Krugman’s points are well-taken, there would be no need for austerity programs were there no outrageous federal government deficits in the U.S.A. and Europe.
Nor would billions of dollars have been funneled out of those economies — dollars which are now flowing out of those nations at exponential rates just to pay interest on reckless government deficits and accumulated debt.
Nor would governments have needed to lay off millions of government workers over the decades — workers whose governments could no longer afford to pay them, because revenues were earmarked for interest payments on debt!
All of these nations should adopt balanced budget legislation so that instead of paying multi-billions in interest every year to foreign lenders, gov’t revenue goes towards creating national infrastructure jobs for citizens.
Realistically, it may take 7 years to get to the point of balanced budget status in the U.S..
After that, a constitutional amendment requiring an orderly pay-down of federal debt spread over 25 years should begin.
The only real weakness of democratic systems everywhere appears to be that over the decades, politicians can’t resist spending taxpayer money to the extent they have almost bankrupted their own nations.
This is not a reason to adopt the statist model or even ‘managed democracy’ — all we need are checks and balances to manage the spending of elected politicians — who, for all their gifts, are not world-class economists.
The following information is courtesy of: brillig.com/debt_clock/ where there is everything you ever wanted to know about U.S. federal government deficits and debt.
U.S. NATIONAL DEBT CLOCK
The Outstanding Public Debt as of 30 Jan 2012 at 06:48:44 AM GMT is:
The estimated population of the United States is 312,131,534
so each citizen’s share of this debt is $48,856.00.
The National Debt has continued to increase an average of
$3.94 billion per day since September 28, 2007!
Concerned? Then tell Congress and the White House!