Today, class is in, and Paul Krugman explains how government debt works, and how and why we never paid off the massive WWII debt. Our economy just grew faster than our debt.
As Krugman puts it: "[F]amilies have to pay back their debt. Governments don’t — all they need to do is ensure that debt grows more slowly than their tax base."
Why is it that clarity is so quickly dismissed in the nation's Capital?
