Deficit reduction cannot and should not be a goal unto itself. Fiscal policy is a powerful tool Congress has to control the money supply. Simple application of the laws of supply and demand would show that when unemployment is high, there is a high demand for money and the money supply must increase. When inflation is high, the demand for money is low, and the money supply must decrease.
Generally, unemployment and inflation share an inversely proportional relationship. To increase the money supply, Congress must often deficit spend. To decrease the money supply, it must accrue a surplus, and when no adjustment is needed it can spend exactly what it takes in. Currently inflation sits at 1.59 percent (for the month of January) and unemployment sits at 7.9 percent. For the time being Congress should engage in deficit spending, and as unemployment comes down then deficit reduction should become the goal.
- My view: Common Core tests erode parental rights
- Letter: Same stale air
- Richard Davis: Let the voters decide the...
- In our opinion: Revisiting Abraham Lincoln's...
- George F. Will: IRS continues to act in...
- Letter: Conflict of interest
- Jay Evensen: Though complicated, Corradini...
- Bob Bennett: Climate change question should...
- Bob Bennett: Climate change question... 95
- Mia Love: Big government needs to get... 92
- Letter: Same stale air 43
- Letter: Mandated freedom 37
- My view: Common Core tests erode... 37
- In our opinion: Talking of tax reform... 28
- Letter: Who's against Healthy Utah? 27
- John Florez: Lawmakers broke the... 25