By Fadhel Kaboub*
The ongoing political deadlock over the U.S. government deficit and the national debt is slowly digressing into one of the most devastating economic pains that a financially sovereign government can inflict on itself and on its own people. With the exception of the readers of New Economic Perspectives and MMT-oriented blogs (here, here, here, here, here, and here among others), the vast majority of the public suffers from an acute form of deficit disorder, which can be diagnosed in a variety of ways, but most commonly you will notice that the subject is convinced that:
- the government should balance its budget and pay off its debt in the same way that responsible individuals, households, and businesses do;
- government deficits crowd-out private sector investments;
- government deficits cause inflation;
- government deficits promote inefficient and wasteful government programs; and/or
- the national debt is a burden on future generations and a form of taxation without representation.
