Is Barack Obama going to end up supporting everybody.?

The rich get the biggest hand-out of all: the right to pay no taxes on municipal bond interest and the right to collect interest on T-bills that Congress forces Treasury to sell at a market rate. Why should Big Gummint hand out these benefits to the 1% when it could just print the money?

Why fear Weimar inflation that can’t happen with 25 million looking for work? Look at the evidence:

1) Lincoln financed the Civil War by printing a ton of greenbacks that eventually retained its nominal value and is today still accepted, if you are lucky enough to find one.

2) FDR financed WW II by having the Fed buy T-bills "...at any price and in any quantity..." After the war, workers, veterans, and contractors created our golden age with their wartime savings and profits. And Big Gummint paid for veterans housing and education, the Marshall Plan, Cold War rearmament, the Korean War, the Interstate Highway System, a man on the moon, the Vietnam War, the war on poverty, a dozen proxy wars, and created such a boom (with little inflation) that the post-war debt-to-GDP ratio declined from 130% to 30% in 35 years. The huge WW II debt was never paid. It still exists as an insignificant fraction of our annual debt interest expense.

3) After Big Gummint printed almost $2T out of thin air with TARP and the stimulus and the Fed inflated us with QE1, QE2, and Operation Twist, core inflation was still under 2.5% in mid-2011.

Yes, Big Gummint can fix infrastructure without inflation as long as there is serious unemployment.

Yes, Big Gummint can monitor both inflation and unemployment. When the lawn is wet enough, stop sprinkling! It’s that simple!

Why doesn’t Big Gummint cover municipal debt with a grant and then pay as you go instead of selling municipal bonds and paying interest as a handout to the 1%?

Why doesn’t Big Gummint cover state deficits with a grant and then pay as you go instead of selling state bonds and paying interest as a handout to the 1%?

Why doesn’t Big Gummint cover our federal deficit with computer keyboards instead of paying T-bill interest as a handout to the 1%?

With keyboards, we can pay for all healthcare and education through university for the bright-enough!

With keyboards, we can pay for Social Security after 60. We can fix the infrastructure.

STOP GUMMINT HANDOUTS TO THE 1%!

Google: University of Missouri Kansas City, Economics Faculty; KeynesForum.com

Obama doesn't support anybody. Citizen taxpayers do it all, with the ever greater debt to banks, investors, and speculators who lend us ever more (so far) to spend beyond our means.