The Lehmann Letter ©
See today’s New York Times for an excellent article by David Leonhardt about the federal deficit and why it’s so hard to shrink it:
But even if we could reduce the deficit, another difficulty arises: Who will borrow and spend? If the government won’t, will we?
Because the fact of the matter is that our economy depends upon borrowing and spending, and less borrowing equals less spending.
So we’re damned if we do and damned if we don’t. We don’t want to resume our profligate ways, but we need that profligate spending to keep the engine humming. We don’t want to mortgage our future, but how else are we going to buy those homes and cars? And if we don’t buy the homes and cars, and then ask the government to cut back, too…………
We’re in a jam.
© 2009 Michael B. Lehmann