January 1, 2012

National Debt, Simply

Paul Krugman:

“Deficit-worriers portray a future in which we’re impoverished by the need to pay back money we’ve been borrowing. They see America as being like a family that took out too large a mortgage, and will have a hard time making the monthly payments.

This is, however, a really bad analogy in at least two ways.”

Krugman's column from today's New York Times is the simplest five-minute explanation of the US debt I've seen. His Nobel Prize was in economics, but his skill is in explaining the complex in everyday terms.