It was refreshing to see Robert H. Frank’s editorial last week in the New York Times
It was refreshing to see Robert H. Frank’s editorial last
week in the New York Times, allaying the fears about government deficit spending
in the United States. According to Frank, the current knee jerk reaction of
doom and gloom about the growing deficit is just that, an overreaction. (www.nytimes.com/2009/12/06/business/economy/06view.html)
He references the renowned economist John Maynard Keynes who argues that it is
“actually good to run them (deficits) during economic downturns” and makes the
point that how the money generated from a deficit is far more important than
the fact that it is there to begin with. Just as doom and gloom reports are contagious,
so, one would assume, are reasoned arguments that things are never as bad as
they seem.
