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the pear in two, I suppose. Without going into a long post which deserves a diary, not all budget deficits are bad; ones which are expressly to invest in future propserity are certainly good deficits: education, reduction of collective carbon footprint by putting money into noncarbon fuelled parts of the energy grid, mass transit infrastructure, public safety and security, quality accessible and affordable housing to facilitate greater labor marke flexbility (and note, when i say flexible, i don't mean it the same way as a neo-lib).

But we don't tax the wealthy near enough for them to pay their fair share for what they extract from the societies in which they live. And it isn't just the wealthy at fault here, though by buying elections they get a special part of the blame; the middle class (esp the petite bourgeoisie) strivers, for their various reasons, also adopt the values and interests of their employers. The reasons for this can best be read in your native tongue, straight out of Lukacs), though I imagine in todays' "modern" Hungary he may have gone temporarily out of style.

I had a friend link this to me not too long ago, it'll give you a few ideas, in French, from a classic french lefty, how to balance a budget and go after a self-interested, self-satisfied press at the same time:

Probably worth a post and an xlation...sorry no time, but I agree with him, if you do start taxing marginal rates at 100% (and you don't have to be communist to want this, either, see Sweden's tax code from not so long ago) you'll see a lot more sustainable state revenues, and also you'll no longer have the sorts of twisted incentives which anglo-american financial capitalism is seeing unwound today.

The Hun is always either at your throat or at your feet. Winston Churchill

by r------ on Thu Apr 3rd, 2008 at 09:20:09 AM EST
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not all budget deficits are bad; ones which are expressly to invest in future propserity are certainly good deficits: education, reduction of collective carbon footprint by putting money into noncarbon fuelled parts of the energy grid, mass transit infrastructure, public safety and security, quality accessible and affordable housing to facilitate greater labor marke flexbility

I agree that that would be sensible deficit spending, and my gripe with the previous Hungarian PM's deficit spending was just the lack of this (no future at all beyond highways, only pay-rises, with simultaneous tax cuts to please the coalition partner too). However,

  1. How different is your (the French Left's) idea of deficit spending from Keynesian anti-cyclical spending (see Migeru)? It is my understanding it goes well beyond that.

  2. How free are governments to pursue such sensible investment into the future when foreign private lenders begin to raise interests or make other claims? (Or, do you mean this system work better if institutional lenders, f.e. the ECB or a very different World Bank, would play party to it?)


*Lunatic*, n.
One whose delusions are out of fashion.
by DoDo on Fri Apr 4th, 2008 at 03:43:52 AM EST
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