tag:blogger.com,1999:blog-6399730406480392183.post8475932727251789493..comments2024-03-27T11:18:34.222-03:00Comments on Viable Opposition: Cost Shifting - Taxpayers are Gonna Pay One Way or AnotherA Political Junkiehttp://www.blogger.com/profile/03342345936277964422noreply@blogger.comBlogger1125tag:blogger.com,1999:blog-6399730406480392183.post-48515889420181453392012-08-15T11:10:11.477-03:002012-08-15T11:10:11.477-03:00Like Ryan, this commentary misses larger issues. ...Like Ryan, this commentary misses larger issues. Ryan cannot credibly reduce the budget deficit without solving the trade deficit. The trade deficit leads to higher unemployment, more government spending and a higher budget deficit. Ryan's positions on free trade allow unbalanced trade and trade deficits. The federal deficit is a lagging indicator of the trade deficit.<br /><br />The article also misses larger finance and banking issues. The amount of money in circulation is a result of borrowing. And, if loans are paid off, the amount of money decreases, resulting in less economic activity. Milton Friedman knew this intimately, but didn't have the stones to propose a replacement for fractional reserve banking (see Positive Money UK's website for a solution). But, concerning Ryan, until Ryan studies these issues and understands them well, any budget policies he recommends will not have the affect on the economy that he thinks they will.Cleistheneshttps://www.blogger.com/profile/05028533369933134648noreply@blogger.com