Learning to live with the demon debt
Article
Cullinane suggests that Keynesianism has won the academic debate but struggles to resonate with the public. 'Businesses of all sizes need to raise debt to finance expansion,' he says. 'People borrow money to become home owners, and the three main parties now promote it to finance university education. But when it comes to escaping from recession, the talk is of "burdening our children", as if they have no interest in economic recovery.
'And in the present, one person's spending is another person's income - so cutting public spending in a recession pretty much means cutting private income. In just the same way, one person's (or government's) debt liability is another person's (or pension fund's) financial asset - and it may well be the safest asset in the fund. It is time to look at the other face of debt.'
Related items
Harry Quilter-Pinner reacts to the Budget on GB News
Interim executive director Harry Quilter-Pinner reacts to the Budget with Jacob Rees Mogg on GB NewsZoë Billingham reacts to the Budget 2024 on Sky News
Zoë Billingham reacts to the Budget 2024 on Sky News live from Grimsby.Second round effects: Why the OBR is likely underestimating the growth effects of public investment
The Office for Budgetary Responsibility has outlined a new approach to modelling the growth impacts of public investment.