Friday, April 03, 2009

Lighten up, Granddads

Nancy Folbre makes the case in the Times for spending now for a better future:
Think of the United States economy as a family farm in need of modernization. Energy prices are going up, but all the tractors are gas guzzlers. Some of our fields have accumulated toxic levels of pesticide, and we need to develop new and better technologies of sustainable production. Our grandchildren want to run the farm, but will need good health and a college education to do it well.

Spending money on increased energy efficiency, research and development, health, and education could increase the value of their assets, helping them repay debt.

In other words, the mommy party wants to borrow money to help the kids, not to hurt them. Keynes, history and environmental concerns lend credence, though not certainty, to this plan. So the granddads should lighten up.

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