Companies and governments are racking up massive debts to cope with the impact of COVID-19. Apart from grants for a month or two of partial salaries, the approach has largely been to extend easy short-term credit to those people and businesses struggling to survive. We can expect, once an initial amnesty on repayments has passed, many of these companies will go to the wall, adding to the massive peak in unemployment. How can economies grow when individuals are piled high in debt and governments are forced to use austerity to repay their massive spending programs. Steve Keen has argued that debt needs to be written-off, even before the Corona crisis. Now seems like the right time for society to discuss the benefits of a debt jubilee. The only downside seems to be a significant reduction in the size of the finance sector. Can we live with that? Or, perhaps they can shift their emphasis to more productive investments.
Related Articles
![No Picture](https://braveneweurope.com/wp-content/themes/mh-magazine/images/placeholder-medium.png)
Economics
Michael Hudson – We Make the Rules
November 2, 2021
Mathew D. Rose
Economics, Finance, Financial Institutions, Globalisation, Inequality, Monopolies
0
Economist Michael Hudson discusses the update of his book “Super Imperialism: The Economic Strategy of American Empire” and the financial motivations behind the US new cold war on China and Russia. Hudson has published a […]
![No Picture](https://braveneweurope.com/wp-content/themes/mh-magazine/images/placeholder-medium.png)
Economics
Steve Keen – Farewell Vicky Chick
Only the good ideas die young Steve Keen is a Distinguished Research Fellow, Institute for Strategy, Resilience & Security, UCL Cross-posted from Steve’s website Building A New Economics The Post-Keynesian Economist Victoria Chick—Vicki to her […]
![No Picture](https://braveneweurope.com/wp-content/themes/mh-magazine/images/placeholder-medium.png)
Climate Crisis
Richard Murphy – Labour is not going to deliver
July 6, 2024
Mathew D. Rose
Climate Crisis, Economics, Finance, Inequality, National Politics, Solutions, Sustainability
0
6 July 2024 Richard explains the two most imporrtant policies of why authoritarian liberals are doomed to failure: ignoring climate change and their propagation of Trickle Down
Be the first to comment