The Seven Deadly Frauds of Economic Policyffice ffice" /






By Warren Mosler


Deadly Innocent Fraud #1:

The government must raise funds through taxing or borrowing in order to spend.



In other words

Deadly Innocent Fraud #2:
With government deficits we are leaving our debt burden to our children.
Fact:

Collectively, in real terms, there is no such burden possible.

Deadly Innocent Fraud #3:
Government budget deficits take away savings.

Fact:
Government budget deficits ADD to savings.

Deadly Innocent Fraud #4:
Social Security is broken.

Fact: Government Checks Donít Bounce.

Deadly Innocent Fraud #5:
The trade deficit is an unsustainable imbalance that takes away jobs and output.
Facts:
Imports are real benefits and exports are real costs. Trade deficits directly improve our standard of living. Jobs are lost because taxes are too high for a given level of government spending, not because of imports.

Deadly Innocent Fraud #6:

We need savings to provide the funds for investment.

Fact:

Investment adds to savings

Deadly Innocent Fraud #7:


Higher deficits today mean higher taxes tomorrow.

Fact:

I agree,
the innocent fraud is that itís a bad thing,
when in fact itís a good thing!!!


http://www.moslereconomics.com/wp-co...009/10/SDF.doc

Any light on the above claims by Warren Mosler.........