Tuesday, July 25, 2006

Deficits do matter

Wow. Michael Shedlock demolishes some economic poppycock found over at the Motley Fool, where a Mike Norman says, "Don't worry, be happy" when it comes to the national debt, the federal budget deficit, and the trade deficit.

Shedlock's remarks about the trade deficit are especially worthwhile if you're of a mind (as I was once) that if you support free trade, you should automatically discount anyone who raises alarm bells about the trade deficit. In a 21st-century United States that's not manufacturing much of anything the rest of the world wants to buy, it matters a whole lot. It's a longish read, but worth your while.


Post a Comment

<< Home