In the past, I’ve used Jonathan Chait as my go-to doesn’t get it liberal* but thanks to liberal godhead Jon Stewart, Jonny C has been on a roll. Last week, Chait pointed out that Stewart’s efforts to enlighten and entertain are somewhat hampered by the fact that he doesn’t know anything about economics. In fact, if Stewart acted on his economic beliefs, he’d be to the right of Rush Limbaugh. Chait quotes Stewart’s setup for a rant on the not gonna happen $1 trillion platinum coin:
America’s got a bit of a cash-flow problem these days. We have a $16 trillion debt. Our credit rating actually got downgraded for the first time last year. So I think you can all agree it’s time to get serious and figure out a way to restore the world’s respect for the soundness of our currency.”
As Chait remarks, none of that is true except the part about the size of the debt. When Stewart actually starts discussing the proposed coin, like so many people, he’s baffled by the idea that the government can make money “out of thin air,” even though for years the government has had a money factory right on the corner of 14th and Independence and they will let you watch them do it. Mentally, Stewart is still on the Gold Standard, even though he doesn’t know it.
Paul Krugman picked up on Chait’s remarks, causing Stewart to defend himself unimpressively—“I don’t know money, but I know funny, and a $1 trillion platinum coin is funny money!” (I’m giving you the gist here.) But, as Chait and Krugman point out, people watch Stewart not just because he’s funny, but because he makes a point, because he’s intelligent. But Stewart’s ridicule of the platinum coin is laughter based on ignorance, which is never in short supply.
*If Chait knew I existed, I would be his go-to bathrobe blogger.
