Deficit Bullshit

Barry Ritholtz is always a good read. This one especially so.

We are told over and over, again and again, that If we allow the federal government to deficit spend, a parade of horrors awaits us, including:

– Excess Federal spending will crowd out Private Capital, choking innovation and new company formation;

– The costs of US borrowing will skyrocket, making the debt impossible to manage;

– The US Dollar will be devastated, and it will be radically devalued against all other currencies;

– All of this will cause rampant inflation, spiking prices to levels not seen before;

– Deficits will act as a drag on the overall economy;

It has been 50 years of hearing this — and NONE OF IT HAS PROVEN TRUE.

Hard to argue with that.