Just a thought..
Friday, January 09, 2009
Was reading through latest issue of Economist a moment ago and was looking into US economy.... What else right?!? And this particular para caught my attention..
Mr Bush and the Republicans in Congress repeatedly gave voters goodies without paying for them: tax cuts without tax reform, subsidized prescription drugs without Medicare reform, and so on."....In economics we always look at 2 period model. If we borrow this period, we must repay in the next plus interest. This model is also extended to infinite horizon. What borrowed by this generation must be paid by the next plus interest! And i thought this was part of the basics of economics, so what have the economists been doing? Or are there no economists under Mr Bush's wings?
May Obama and his new crew be better! It's painful to tighten spending but it's necessary. For country and for the people
