Photo: Courtesy of Bloomberg
Ron Paul was just on Bloomberg TV arguing against Paul Krugman.It was fun, but it actually wasn’t a real “debate” since the two of them are too far apart for them to really even land any puncher on each other.
Ron Paul got a lot of things wrong, but here’s one thing that was provably false just on maths.
Paul was asked which should be the #1 priority: Fighting unemployment or fighting the debt.
Paul said the debt was the bigger priority, because it’s a cause of unemployment, due to the fact that so much of our money goes to paying off the debt.
But actually this isn’t true at all.
Here’s a look at interest payments divided by GDP going back since the mid-1940s.
It turns out we’re at the bottom of the range here, far below where we were in the mid-80s and 90s. Yes, low interest rates are a big reason for this, but it’s clear that the debt isn’t sopping up an unusual share of our annual wealth, at least not by any post-WWII standards.
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