Ask a Keynesian: With U.S. Borrowing Capped, Won’t More Pentagon Spending Destroy Jobs?
Robert Naiman, Huffington Post
I claim that the following is a basic economic fact, which all Keynesian economists should readily acknowledge: in the current federal budget political context, in which federal borrowing is capped under the Budget Control Act, and repealing the BCA’s borrowing cap is not under serious consideration; and in which increased taxes on the super-rich, like a Wall Street speculation tax, are not considered politically viable in Washington, unnecessary Pentagon spending destroys American jobs.
Before explaining why we know this fact to be the case, let’s consider two related reasons why this fact matters a great deal right now: the Burlington F-35 basing fight and the apparent return of the proposed federal budget “Grand Bargain.”
In Burlington, Vermont, the city council, which owns Burlington International Airport, is considering a resolution to ban the basing of the noisy, dangerous, problem-plagued F-35 warplane at the city-owned airport.
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