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Uncle Sam Won’t Go Broke

“Panic among policymakers about the high level of government debt is misplaced. The real economic menace is budget-slashing,” say two economists for The Guardian.
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“The federal fiscal policy debate is being overwhelmed by a growing sense that America must slash its deficit now, before it is too late. Actually, the United States is in no danger of a treasury debt crisis and can carry far more debt than people believe without dire consequences. Unfortunately, many who argue for rapid deficit reduction base their case on a slew of misunderstandings and fallacious generalisations about the consequences of high public debt. In reality, nations vary sharply in their capacity to carry public debt.”

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