OpEdNews Op Eds

Economist Mark Zandi on Default: "We Will Be Dooming Our Economy and the Entire Global Economy" for Years

By (about the author)     Permalink       (Page 1 of 1 pages)
Related Topic(s): ; ; ; ; ; , Add Tags Add to My Group(s)

View Ratings | Rate It

opednews.com Headlined to H4 10/15/13

Become a Fan
  (2 fans)


Shutterstock

On Monday, I took a shot at Sarah Palin after she wrote, "To suggest that raising the debt limit doesn't incur more debt is laughably absurd. The very reason why you raise the debt limit is so that you can incur more debt. Otherwise what's the point?" In a tweet, I noted, "No, you do it so you can pay the debt you accrued." That is, the government's debt is not created by the extension of borrowing authority; it is created when Congress establishes entitlements or passes spending bills that require government borrowing. If you sign a tuition contract with a college for your kid and need to take out a loan to cover all or part of it, you assume a debt when you enter into that agreement, not when you go to the bank and ask for an extended line of credit. Put another way, raising the debt ceiling does not change the amount of money the US government owes.

Nevertheless, a mass of conservative trolls rushed to Palin's defense and howled about my tweet. Looking for further edification on this matter that I could share with the Palinites, I sent her quote to Mark Zandi, the prominent economist who was one of the policy advisers to the McCain-Palin campaign in 2008, and asked him to evaluate it. Zandi, who is now chief economist of Moody's Analytics, emailed back with a bigger message:

Please go to Mother Jones to read the rest of this article.

 

http://www.motherjones.com/

David Corn is  Mother Jones ' Washington bureau chief. For more of his stories,  click here . He's also  on  Twitter  and  FacebookRSS  |    David is (more...)
 

Share on Google Plus Submit to Twitter Add this Page to Facebook! Share on LinkedIn Pin It! Add this Page to Fark! Submit to Reddit Submit to Stumble Upon

The views expressed in this article are the sole responsibility of the author and do not necessarily reflect those of this website or its editors.

Writers Guidelines

Contact Author Contact Editor View Authors' Articles

Most Popular Articles by this Author:     (View All Most Popular Articles by this Author)

Can Obama Disrupt the Shutdown Narrative?

Hillary Clinton's Goldman Sachs Problem

Ted Cruz vs. Twitter: Does Obamacare Hurt Americans?

The Real Conspiracy Behind the JFK Assassination

WhatsApp, Bought by Facebook for $19 Billion, Promotes a Radical Anti-Corporate Message

More Evidence of Paul Ryan's "Inner Cities" Problem

Comments

The time limit for entering new comments on this article has expired.

This limit can be removed. Our paid membership program is designed to give you many benefits, such as removing this time limit. To learn more, please click here.

Comments: Expand   Shrink   Hide  
No comments