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Yes, it's easy to avoid austerity by borrowing off the next generation.
by emmelaich 8y ago
Yes, it's easy to avoid austerity by borrowing off the next generation.
- RobertoG 8y agoI know that the 'borrowing off the next generation' is a popular sentence, but, does that means anything at all? Would you prefer to live in a country with a high public debt and industry, infrastructure and an educated population or in a dessert with zero public debt? What even means the 'public debt' number when a country have its own currency and inflation is under control? Nothing at all.
- SideburnsOfDoom 8y ago> What even means the 'public debt' number when a country have its own currency and inflation is under control? This is a question that you have to ask when using the analogy between a country's finances and e.g. a household. It _can_ mean that one part of the country (government, central banks) has created and loaned money to _other parts of the same country_. In other words, liquidity and investment. i.e. good things! This is fundamentally unlike a household.
- emmelaich 8y agoMany municipal councils in the USA have enormous debts due to generous pension schemes and inflated wages and salaries. That's about the most direct example of 'borrowing off the next generation' Someone has to pay the debts, and it mostly won't be those who benefited from it.
- SideburnsOfDoom 8y agoThe idea that a country's budget can be compared to a family's budget is a big fallacy. They are fundamentally different.
- tonyedgecombe 8y agoThe idea that they are fundamentally different is also wrong, or did you think we don't need to service our debt?
- SideburnsOfDoom 8y agoThat's another false dichotomy. Also, yes, they are fundamentally different.