Joke Line Returns
Before JournoList kept Joe Klein relatively informed, he had a penchant for writing stupidities about issues he had not the first clue about. Apparently the demise of the JournoList has Klein going back to his old ways. In a generally clueless post about Social Security, this specific bit of ignorance caught my eye:
There is a strong progressive argument for fixing social security now. Actually, there are two. First, as we saw when Bill Clinton chose to address the federal deficit in 1993, markets respond to fiscal responsibility. In that case, interest rates declined and the economy boomed (despite higher taxes, I must repeat again and again); now, a move toward federal fiscal responsibility might encourage the U.S. business community to start investing the $1.8 trillion in cash it is hoarding and thereby create some jobs.
(Emphasis supplied.) Setting aside the fact that Social Security is not a fiscal problem, Klein simply has no understanding of our current economic problem - which is deficient aggregate demand. Paul Krugman has explained this point a million times already:
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