Comment Re:First Time (Score 1) 639
The problem is that is does not get paid back.
Sure it can be. The debt as a percentage of GDP decreased under both Jimmy Carter and Bill Clinton. I don't live in the US anymore, though I did, but in my country of residence the national dept was near 80% in 1995. At the end 2010 it had been reduced to about 35%.
I think Keynesian economics is a whole lots snake oil myself but I will concede we don't have a good test lab for it.
It is the dominant economic theory today. "We are all Keynesians now." -- Milton Friedman
The root of all inflation really is government debt.
Inflation can be caused by an overly large money supply, but is more commonly caused a larger demand than supply for goods and services.
