Horse manure from BY VIVEKANAND JAYAKUMAR AND BRIAN KENCH, from the Hill

In recent decades, critics of fiscal policy intervention contended that deficit-financed government stimulus inevitably leads to crowding out of private sector consumption and/or investment by raising the real interest rate. The post 2008-09 era showed that, despite increases in government budget deficits and public debt levels in advanced economies, there was little or no evidence of crowding out.

Here is a chart for the uninformed:

 A pattern of declining growth after each regularly scheduled recession.

I also add that we currently pay 2.2% for the debt borrowed last time when the same bozos said interest rates were cheap.


Note the declining growth pattern and recessions generally coincide with political regime change, dsamn near proof positive the authors are full of horse manure. Note the deflationary episodes get worse and the deficit for each recession gets higher. And, I might add, every time we believe these bozos the wealth concentration gets worse.
Here is current real interest rate, interest charges/debt that we pay, along with the implicit price deflators.


We pay a very high prices and a multiplier less than one every time we bailout the federal government, and we apply a regressive Fed tax on the middle class. And once a generation we pay for this foolishness with a rebellion and default.

Note, we currently pay a real, ongoing rate of nearly 2.5%. This includes the social security debt. Note also that our real rate, minus the deflator is going up slightly.