Misconceptions about deficits restrict our ability to address societal issues from "summary" of The Deficit Myth by Stephanie Kelton
The prevailing misconceptions about deficits have serious implications for our society. These misconceptions often lead policymakers to make decisions that ultimately restrict our ability to address key societal issues. By viewing deficits through a narrow lens, we overlook the broader implications of government spending and its potential to drive positive change. One major misconception is the belief that the government must operate on a budget similar to that of a household or business. This flawed analogy leads to the false notion that the government must constantly strive to balance its budget, even at the expense of crucial social programs. In reality, a government that issues its own currency operates under fundamentally different constraints than a household or business. Understanding this distinction is crucial for creating effective policies that prioritize the well-being of all citizens. Another misconc...
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