http://www.economicshelp.org/blog/uk-economy/what-should-government-do-about-its-debt/ Economics Blog - current events and economics essays Thu, 18 Mar 2010 19:46:30 +0000 http://wordpress.org/?v=2.9.2 hourly 1 http://www.economicshelp.org/blog/uk-economy/what-should-government-do-about-its-debt/comment-page-1/#comment-5027 Rowan McDade Sun, 29 Nov 2009 15:17:30 +0000 http://www.economicshelp.org/blog/?p=1984#comment-5027 Generally good. I just want to take you up on one point "When debt gets so large it could create problems of financial crowding out (higher interest rates) and possibly inflation, and depereciation of sterling." The major problem with this argument is that the government does not 'compete' with the people for loans. What the government loans is spent on the people, and possibly loaned to them. The government does not consume any of the money, simply rearranges it. Generally good. I just want to take you up on one point
“When debt gets so large it could create problems of financial crowding out (higher interest rates) and possibly inflation, and depereciation of sterling.”
The major problem with this argument is that the government does not ‘compete’ with the people for loans. What the government loans is spent on the people, and possibly loaned to them. The government does not consume any of the money, simply rearranges it.

]]> http://www.economicshelp.org/blog/uk-economy/what-should-government-do-about-its-debt/comment-page-1/#comment-5010 Ralph Musgrave Thu, 26 Nov 2009 10:27:38 +0000 http://www.economicshelp.org/blog/?p=1984#comment-5010 Agreed !! Agreed !!

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