Stephanie Kelton is an associate professor of economics at the University of Missouri-Kansas City and the founder and editor of New Economic Perspectives. She has a good op-ed in today's L.A. Times, and it goes a little something like this:
Look, up in the sky! It's a "fiscal cliff." It's a slope. It's an obstacle course.
The truth is, it doesn't really matter what we call it. It only matters what it is: a lamebrained package of economic depressants bearing down on a lame-duck Congress. [...]
We tend to forget that one person's spending becomes another person's income. At its most basic level, macroeconomics teaches that spending creates income, income creates sales and sales create jobs. And creating jobs is what we need to do. Until the fiscal cliff distracted us, we all understood that. [...]
So in our current circumstance — a growing but fragile economy — policymakers are wrong to focus on the fact that there is a deficit. It's just a symptom. [...]
We do not have a debt crisis, and our deficit is not a national disgrace. We are not at the mercy of the Chinese, and we're in no danger of becoming Greece. That's because the U.S. government is not like a household, or a private business, or a municipality, or a country in the Eurozone. [...] [L]awmakers should be haggling over how to use the tool of a federal deficit to boost incomes, employment and growth. That's the balancing act we need.
That's a whole lot of fancy myth bustin' sprinkled with wisdom and iced with truth.
So why isn't Congress getting this again?
Please read the entire piece here.