| kowenicki said: Can the US decide its own fiscal policy? can it control its own money supply? can it decide its own interest rates? Ireland can't, Portugal can't, Greece can't, Spain can't, Italy can't |
Fiscal policy, yes they can. Control the money supply / interest rates not as much as the US, but the US has been doing that for years, and so far there's no indication at all that the economy will grow due to the borrowing. Being able to control those things gives the US gov more wiggle room, but fundamentally it doesn't make any difference with regards to borrowing one's way out of the hole.
Japan could control all those things you mentioned and their economy has been in a slump for more than a decade. Borrowing didn't help them grow their economy, even though they borrowed and spent a lot more than any other developed country. Other countries have tried running large deficits and they ended up defaulting, not making economic miracles...
Again, what is the basis to say the US government will borrow its way to prosperity as Akvod was defending?
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