Economy - Economics USA

Now Isn't 1945

09-03-2009 • Wendy McElroy

Upon learning that the Obama administration will add $9 trillion to the existing $11.5 trillion federal debt, Paul Krugman pooh-poohed the problem by saying "...even if we do run these deficits, federal debt as a share of GDP will be substantially less than it was at the end of World War II." The argument being, the U.S. paid it off then, and can do so again.