Robert Skidelsky has fallacies on his mind

He is a House of Lords member!

Four Fallacies of the Second Great Depression

But governments are not like households or companies. They can always get the money they need by issuing bonds.

To the extent that fiat users are willing to tolerate the abuse.

The problem with this argument is that governments are rarely faced with having to “pay off” their debts.

Politicians sweat a whole lot about making interest payments.

More important, when there are idle resources (for example, when unemployment is much higher than normal), the spending that results from the government’s borrowing brings these resources into use.

The USA is in a 2% growth mode, everything is similarly constrained. Relative idless is the measure, and relatively speaking we are constrained.

Consider the belief that the more the government borrows, the higher the future tax burden will be.

Bubba Clinton faced an interest bill that was 50% of the budget.

The statement, “If we all saved more in a slump, we would all be better off,” is absolutely false. We would all be worse off.

Not true, when we contract we keep higher inventories relative to flow. When we expand we keep smaller inventories relative to flow. Both of these are normal, and normal things do not make us worse off.