The Deficit Myth

"The Deficit Myth" argues that the common focus on government deficits—spending cuts and austerity—is misleading. It explains that in modern economies with sovereign currencies, governments are not like households; they can create money. Deficits are often mischaracterized as inherently bad, but they are necessary for investment, growth, and maintaining public services. The real concern should be inflation and resource use, not overall spending or deficits. The book advocates for viewing government deficits as tools for economic stability and development, challenging the idea that reducing deficits should be a primary policy goal.