Forbes: How to destroy the US economy: Balance the budget

[Guitarzan]

I had to post this as it's one of the most bizarre pieces I've read in awhile...one would think it came from the Onion.

http://blogs.forbes.com/johntharvey/2011/06/05/how-to-destroy-the-us-economy/

[JamesButabi]

UGhh.....


When the debt becomes due, they sell more. Because all US debt is owed in a currency we are legally permitted to print, it is impossible to face debt default. We can choose to default, but we are never forced to.

Nor is this inflationary. This is true for a variety of reasons, the most critical of which being that it does not represent more money chasing fewer goods since the quantity of the latter rose–that was the whole point of the exercise

According to this mans "logic," printing money creates more goods. Had this assumption been true Americans can rejoice in never having to work again. We will just let all of the other countries create all of the products and ship them in. Their demand will be off the chart!

How does this guy completely ignore production incentives and what creates them? Does he think everyone can just have free money and everyone will still strive to produce/ innovate? Forbes really gives them a spot to blog this garbage economics?

[Travlyr]

It appears that the author, John T. Harvey is an economics professor at TCU.

He may be right, but he should go on to say that another way to destroy the US economy is to not balance the budget. He seems to be fine with those close to the printing press getting all the gravy while leaving mere crumbs for the private sector.