Ooops. All that stuff about debt dragging down the economy? Nevermind! http://www.nextnewdeal.net/rortybom...einhart-rogoff-and-there-are-serious-problems http://www.latimes.com/business/money/la-fi-mo-debt-excel-error-20130416,0,4073638.story http://economix.blogs.nytimes.com/2013/04/16/flaws-are-cited-in-a-landmark-study-on-debt-and-growth/ http://qz.com/75091/anyone-halfway-...y-knew-reinhart-and-rogoff-didnt-smell-right/ http://www.motherjones.com/kevin-drum/2013/04/quote-day-excel-error-destroys-world http://www.washingtonpost.com/blogs...usterity-based-on-an-excel-spreadsheet-error/
If the debt is not so bad, why not start paying it off? If getting into debt actually helps the economy, shouldn't all this deficit spending over the years have made the economy really good by now? If we cannot start paying off the debt now, when will we?
Debt is a tax by other means when they begin repudiating it buy paying it off with printed dollars. How much more money should the government be "printing"?
Ya, I read about this as well!! On top of that, the data is also inaccurate because it assumes a false causality. In time of high debt to GDP ratio, growth rates are slightly lower, but the cause is mixed up. Poor economic performance causes debt to GDP ratios to increase. The high debt to GDP ratios, don't cause the poor economic performance. The debt to GDP ratio has almost doubled since 2007. A ratio caused by bad economic performance.
I see what you are saying but the reverse argument uses post ww2 data to its favor too. On any event out of control debt scares people to invest in inflation hedges which do not grow economies. Gold for example. It isn't total debt but the growth of deficits that scare people the most.
