Letter: Are these bad economic times?

Anchorage Daily NewsNovember 10, 2013 

There’s a myth that we’re in “bad economic times” and can’t afford whatever. This is nonsense.

It’s true for families, cities, states, which can’t create money. If we don’t have income – and don’t have income-potential justifying borrowing – we can’t spend. But our federal government creates its own money.

The federal government has the power to draft resources (manpower) needed (for example) to fight a war. If we authorized our government to do so, it could fight this depression by simply drafting people and putting them to work.

That would be a command economy, and market solutions are often better. That’s why we use money. The government can “draft” manpower simply by creating and spending money.

And no — in our current circumstances, in a depression — interest rates are not a problem. The government does not need to borrow to spend (except from the Federal Reserve, which creates the money).

The federal government could be supplying states with block grants to support hiring teachers, police, whatever. But no, we’re in bad economic times.

— Rick Wicks


Anchorage Daily News is pleased to provide this opportunity to share information, experiences and observations about what's in the news. Some of the comments may be reprinted elsewhere in the site or in the newspaper. We encourage lively, open debate on the issues of the day, and ask that you refrain from profanity, hate speech, personal comments and remarks that are off point. Thank you for taking the time to offer your thoughts.

Commenting FAQs | Terms of Service