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Printing Money

Recorded on August 7, 2011

From The Heritage Foundation, I'm Ernest Istook.

 

The former chairman of the Federal Reserve has demonstrated the disconnect between everyday Americans and Washington power brokers.

 

Alan Greenspan says the USA will never default on its obligations because, in his words, “We can always print more money.”

But printing money to pay debts just makes each dollar worth less. It might spark some pretty nasty inflation. It certainly doesn't fix our economy, create jobs, or restore America's just-downgraded credit rating.

It's been a generation since America's bout with inflation in the 70's—when the combined rates of inflation and unemployment reached 20 percent—a combined measure that was labeled the misery index.

Today's leaders should quit trying to shift blame and start admitting that our own government has caused job loss, economic loss, and our still-rising national debt.

Printing more money doesn't fix anything—and neither does borrowing more.

 

From The Heritage Foundation, I'm Ernest Istook.