It’s OK to add to debt to grow jobs

By Josh Bivens | June 13, 2012

Casual observers of budget politics (that is, most voters) may know that the experts in such things are very concerned about rising public debt. They have also probably heard much talk about the “fiscal cliff” the nation is headed for in 2013.

What they might not know is the real danger is that public debt will stop rising quickly. That cutting spending and raising taxes to slow the growth of debt will cause spending to fall across the economy and bring about a new recession.