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The first debt borrowed starts a countdown timer of X years--not to exceed the median age of mothers at the birth of their first child--until the jubilee date,
by logfromblammo 8y ago
The first debt borrowed starts a countdown timer of X years--not to exceed the median age of mothers at the birth of their first child--until the jubilee date, when all outstanding debts are cancelled and forgotten.
If your state is debt-free, that's great; you have X years to borrow and spend your way out of trouble. If your state owes even $1, better pay it off quick to reset your Keynesian pump-priming capacity! And if your state can't pay off its debt, the younger generations aren't forced into austerity to pay for the excesses of the elders.
- rabidrat 8y agoWhat is the incentive to pay it off at all, if it will be forgiven in X years?
- logfromblammo 8y agoSo that lenders will keep loaning you money when you need it, and on better terms. Lending terms will tighten up as the jubilee deadline approaches. If it's only 5 years away, lenders will not even bother calculating payoff periods further than 5 years into the future, minus the amount of time required to file and collect on any lawsuits for nonpayment. If a state actually hits a jubilee with debt still on its books, it will quickly find that borrowing becomes a much weaker tool in its fiscal toolbox. It might also help to make all persons holding elected office with budgeting or spending authority at any time during the state's indebtedness to become ineligible to hold such offices for Y years after a jubilee.