I made the mistake of listening to NPR for about 15 minutes this morning and got to hear Andrea Seabrook present a Bart Simpsonesque explanation of debt economics. Here's Andrea:
"...so it's useful to take a moment and just remind ourselves of the big picture here. The financial world is already kind of skittish; the markets haven't tanked, but investors are on alert. They're still recovering their confidence from some pretty hard shakes in 2007 and 2008. Now they're watching other countries - especially Greece - deal with the effects of too much government debt built up over years of spending. And then they look at the US...and the benefits the government has promised to people who are retiring cost way more than it can afford... Investors see serious work that needs to be done..."
Just a few notes on Andrea's brilliant analysis:
- The Big Picture: You might be thinking that she would mention the collapse of that little old $8 trillion housing bubble [one of those "hard shakes"], or wage stagnation that drives down consumer demand, or the whole ponzification of the US and global financial markets, or....
- Greek Debt Crisis as caused by "years of spending": It's hard to imagine a more stupid summary of the complex Greek situation involving complicated Eurozone history & politics, investor predatory practices, and fallout from the US economic crisis - unless the purpose of the analysis is to promote the FOX/Republican (and now Democratic leadership) line that government spending is a bad thing.
- Retirement benefits are more than government can afford: well what can you say to this pure propaganda about Social security - except to note that it fits with NPR's regular assaults on this successful government program.