Why Deficits Don't Matter

Congress is coming off of a bruising debate over the deficit ceiling – a preview of what we will experience again in a few months.  The economy is growing slowly – some would say incrementally, after the 16-day government shutdown.  Unemployment is a lingering problem, and the Fed’s quantitative easing (QE) program works in reverse; that is, instead of boosting economic growth in any visible way, any hint of ending it spooks the markets. What’s to be done about this mess? Stephanie Kelton, Associate Professor of Economics at the University of Missouri/Kansas City, believes that the root of all these…