Krugman Doesn't Think American Debt Is That High

in #politics9 years ago

Paul Krugman, the famous economist and NY Times opinion writer, expressed his view of US government debt today. To quote:

"...After all, investors, who are willing to lend to America at incredibly low interest rates, are evidently not worried by our debt. And there’s good reason for their calmness: federal interest payments are only 1.3 percent of G.D.P., or 6 percent of total outlays. These numbers mean both that the burden of the debt is fairly small and that even complete repudiation of that debt would have only a minor impact on the government’s cash flow."

The complete column is here, although it's mostly about Donald Trump's ignorance.

http://www.nytimes.com/2016/05/09/opinion/the-making-of-an-ignoramus.html?action=click&pgtype=Homepage&clickSource=story-heading&module=opinion-c-col-left-region&region=opinion-c-col-left-region&WT.nav=opinion-c-col-left-region

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