Debt Fear-Mongering Has Moved from Mockable to Dangerous
The lead news story for most of the day at The New York Times on Wednesday was: " U.S. Debt Hits $40 Trillion as America’s Borrowing Binge Continues ." Again, that was a news story, not an editorial. The US is on a borrowing binge , you see, and if we are to believe that The Times upholds its professed standards of journalistic objectivity, that is a factual and neutral statement. I will not bury the lead/lede here. There is no reason to panic about the US debt situation. I will return to that conclusion in some detail below, but the key point up front is that there is nothing new in what The Times reported on Wednesday, other than the number $40 trillion itself, which Paul Krugman correctly described as "a number that is big and round, but otherwise has no special significance." The last time The Times went back to the debt fear-mongering well (on May 9 of this year), I offered a prediction: "The next trillion in gross debt that the US will...