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David graeber the first 5000 years5/13/2023 ![]() Enlarged government deficits were the consequence of the financial crash, not the cause. ![]() Public debt was not implicated in the collapse of 2008, nor is it retarding the recovery today. Budget austerity, in their view, will shrink demand and slow growth, making the debt burden that much heavier.Īs important as this debate is, there’s something missing. Liberal economists, such as Paul Krugman and Joseph Stiglitz, have replied that only faster growth rates and higher gross domestic product will reduce the relative weight of past debts. These escalating obligations, they claim, will be passed along to our children and grandchildren, leaving America a poorer country. To conservatives, the economy’s capacity for recovery is impaired by too much government borrowing. ![]() When political leaders and economists debate the subject, they refer mostly to public debt. © The Saul Steinberg Foundation/Artists Rights Society, New YorkĪt the heart of the argument about how to revive a depressed economy is the question of debt. ![]()
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