Feeling the fear? Just when I thought I'd heard enough of predictions, political gut-wrenching, and deficit despair, I watched a most unusual interview with the author of The Predator State.
In his discussion with Bill Moyers, authorJames Galbraith made some very interesting points...and lowered my heart rate (for the moment).
- We can choose to build a better economy through deficit spending...or we can choose a terrible economy by depending on the free market to right itself. The budget deficit will grow either way.
- A lack of quick government intervention could lead to broken local governments who depend on property and sales taxes to take care of their citizens and infrastructure.
- The dollar is still the strongest currency in the world and countries are still willing to loan us the money we need to stabilize the global economy.
- These times are as serious as The Great Depression when it comes to the initial panic in 1929. But if the people and the government have the will to take the right steps, we can avoid the long suffering years of 1930, '31, '32.
- And finally, get used to deficits.
Meanwhile, what did Galbraith mean by titling his book The Predator State? Watch the interview to find out.