Because presidential elections turn on the economic condition of the country, we might expect candidates to know something about the subject of economics. Apparently, neither they nor their advisors know very much.
As lovable Bill brags about running government surpluses, we might ask a couple of obvious questions.
Why should the government run a profit? And, from whom does that profit come? That profit comes from household money. It doesn't make sense for the government to compete with private industry for profits, does it?
It makes more sense, particularly during recessions, for the government to run deficits, which put financial assets into households. That helps maintain household spending, which is the main driver of our economy.
Bill Clinton should stop bragging about his surpluses, they did more harm than good. Unfortunately, Obama and Romney both fail to see the inevitability and virtue of deficits.
