Presented with little comment…
In other words, 5 months after telling the world “it’s time to borrow,” …
..investing more in infrastructure would clearly make us richer. Meanwhile, the federal government can borrow at incredibly low interest rates: 10-year, inflation-protected bonds yielded just 0.09 percent on Friday.
Put these two facts together – big needs for public investment, and very low interest rates – and it suggests not just that we should be borrowing to invest, but that this investment might well pay for itself even in purely fiscal terms. How so? Spending more now would mean a bigger economy later, which would mean more tax revenue. This additional revenue would probably be larger than any rise in future interest payments.
Suddenly the esteemed ‘economist’ says – after Trump’s election – ‘this time is different’…
This post was published at Zero Hedge on Jan 10, 2017.
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