We would like to share our thoughts after reading “The Deficit Myth” by Stephanie Kelton. We learned that there are three myths regarding the deficit.
First, the federal government should budget like a household. Second, deficits are evidence of overspending. Third, deficits will burden the next generation.
Actually, the federal government (a currency issuer) can never run out of money. Deficits are not necessarily a problem until they start to cause high inflation (inflation has not been an issue for quite some time). We can use deficits to increase funding for crucial programs like education and health care, and even to fund a national jobs program.
The focus should not be on whether we have the money, but on what issues should be funded. Learn more about modern monetary theory and the solutions to current problems in our country. We don’t need to fix the debt, only our thinking about the debt.
Susan Ring, Carmel
Beth Kurlander, Carmel