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Heidelberger vs. Howie on Fiscal Policy: Spending Caps Don’t Make Sense

Gordon Howie tries to pin me down on fiscal policy and the national debt. He gets me to say that spending more to get out of debt "sounds nuts, nuts, nuts!" But I stand by what I say in this April interview with the Wayne's World of South Dakota conservative thought: deficit spending and economic stimulus sound nuts, but sometimes they are useful. Capping federal spending sounds sensible but, as I've often said to Stace Nelson, it's bad policy. Welcome to macroeconomics:

I hope you can see how much fun I'm having in these videos. Gordon, you and I really need to do this show live at the Central States Fair. We could open for Huey Lewis and the News... or the demolition derby!


  1. Roger Cornelius 2014.06.19

    Gordon mentioned the $17 and half trillion debt a number of times without mentioning President Obama, hmm!
    The interesting part of these fiscal discussions is that conservatives fail to mention the debt pre-Obama, and all of the sudden the sky is falling. President Obama didn't rack that debt all by himself, he had some help from Bush.
    Cory made all the right points on debt, there aren't a whole lot of Democrat and Republican businessmen that didn't go into debt to build their business.
    Conservatives have only one solution to debt management and that is cut taxes, when in reality it takes a whole bunch more.
    It will always come down to cut government spending, but what to cut? Do we cut entitlements to the rich or entitlements to the poor and those in need of health insurance?

  2. Jerry 2014.06.19

    Debt is good. Without debt you cannot sell bonds and without selling bonds you are worthless and cannot grow a country nor grow a business. You cannot buy a house or a car or pay for school. Debt is good, try some today!

  3. caheidelberger Post author | 2014.06.19

    I still don't like debt. But Jerry's right. How do people think the bond market works? Among other things, don't government bonds help folks diversify their portfolios and hedge against market plunges?

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