In The Budget Balance powerpoint , I pointed out that the real economic sacrifice imposed on the country by government borrowing could be zero – or it could be substantial – depending on what the government does with the money. In the article, “Entitlements, Public Investment, and the Changing Nature of the U.S. Government,” on Tim Taylor’s blog, Conversable Economist, we find that ‘what the government does with the money’ has been changing over time in a consistent manner. I want you to consider three points related to that article
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