Wednesday, January 14, 2009
You know how I've gotten ahead a little in life? By running a deficit -- for my house, my vehicles, for other things that make life good -- and even letting it get out of hand to make a great leap forward (hee hee) now and then: specifically, when Dr. ER and I together signed on numerous dotted lines for our house, and when each of us individually signed for gargantuan student loans.
Deficit schmeficit. Screw the U.S. deficit -- at least until we get this economy moving ahead again. And after the crisis has passed, let's realize that running a deficit of manageable size, and occasionally of seemingly unmanageable size, actually is an important tool of a household, a business, an economy and a government.
That's the thing with conservatives and Republicans. It's always someone else's fault, unless it isn't bad when Republicans do it, in which case the Republicans did it because it's a good thing.
BTW, the word verification is conspiring - it is "sumodumb", which is as good a definintion of Charen's column as I could come up with.
Most but not all economists believe the budget should be roughly balanced over the course of a business cycle - deficits run at times like this and surpluses when growth is strong. Probably much as you would do with your personal finances.
I ran personal budget deficits for YEARS after college because I made jack for a living as a journalist. I paid off my loans in 10 years. But I didn't approach "comfortable' -- strike that: "not scared sh--tless" -- for another few years.