Numerators and Denominators

Brad DeLong, economist and real smart guy:

As long as interest rates stay low and economies stay depressed, more government spending now will produce a healthier economy in the short run and is highly likely to produce a lower long-term debt burden in the long run, for the debt-to-annual-GDP ratio has a denominator as well as a numerator. [emphasis added -mb]

This is why we teach our children arithmetic. Read the entire post here.