A couple of last quick answers:
jaybo, the nice thing about arithmetic is that it’s not a matter of credibility.
Dan_b, the thing about these numbers is that they indicate that we are investing in greater productivity. Whatever the underlying mechanisms are, the net national wealth — assets minus liability — is growing. Could it grow faster? You bet. But, pace jaybo’s video, if the total assets are growing faster than the total liabilities, you can continue borrowing indefinitely.
You are not heading for bankruptcy if you always have more assets than liabilities.
Would it be better to end the deficit and pay down the debt? Sure, as long as that doesn’t kill the increase in net assets.
Larry, that’s not correct. Looking at the increase in national net worth is, if anything, an indication that the current policies, whatever their flaws, are successful. Doesn’t mean they can’t be made more successful, but the “crisis” is being manufactured by people who want to lead us, not inform us.
This is about to roll off the front page; I’ll be posting the original, along with more extensive comments, at my Explorations blog. Let me encourage everyone to come there if you want to continue the conversation.
