Krugman’s Zombie Idea: We Owe It to Ourselves, by Scott A. Burns

No, we don’t owe the national doubt to “ourselves,” whatever that’s supposed to mean. The US government owes the national debt to its creditors, whoever owns the government’s bills, notes and bonds. That’s a specific group, and in no sense does it incorporate the vague collective “ourselves.” That specific group will get screwed when the government defaults. From Scott A. Burns at aier.org:

Paul Krugman coined the term “zombie ideas” to describe “policy ideas that keep getting killed by evidence, but nonetheless shamble relentless forward, essentially because they suit a political agenda.”Krugman has revived one of his favorite zombies: the notion that high government deficits aren’t dangerous in the way that an individual incurring heavy debt is because the national debt is “money we owe to ourselves.” He doubled down on his claims in response to an article comparing the dangers the debt poses to future generations to climate change.

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