Sunday, August 7, 2011

A Decade of Stimulus, A Mountain of Debt

Everyone has something to say about the nation’s debt downgrade. Among the more useful and informative columns is Caroline Baum’s on Bloomberg.

Responding to the unreconstructed Keynsians who are calling for more stimulus, Baum explains that we have been trying their favorite policy for more than ten years now, to no avail. We have run the national debt off the charts and have no economic growth to show for it.

Her solution: a massive overhaul of the tax system: either a flat tax or a consumption tax.

For clarity and cogency, Baum stands out. It’s well worth a read.

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