Wednesday, May 23, 2012

Steve Keen — Mountain of Debt: A Mountain of Stress on Economy


Mountain of Debt: A Mountain of Stress on Economy
by Steve Keen | Professor of Economics at the University of New South Wales
Interview with Wall Street Journal
Posted at Steve Keen's DebtWatch

6 comments:

GLH said...

I think Steve King has done a great job pointing out the problem with private debt, but he really doesn’t agree with sector economics and the idea that private saving is government spending does he?

Anonymous said...

One difference I seem to notice between Steve Keen & Michael Hudson and MMTers, is that they place more emphasis on the idea of 'debt'. MMTers make a strong distinction between private-debt & public-debt. I believe that Michael and Steve don't make this 'strong' distinction. They seem to both prefer a debt-jubilee/cancellation, rather than an increase in public-debt.

I think this has profound consequences for how society treats the idea of 'debt'. IMO both remedies will have the same effect on balance sheets, however if a debt-jubilee was initiated people would realize the impotency of 'debt'.

Matt Franko said...

Most debt is housing and cars (and coming on strong recently, student loans)

Is Keen suggesting that we should just GIVE everyone a free house and a free car and a free education?

Is Keen in effect recommending a Basic Income Guaranty?

Resp,

Anonymous said...

Matt, what I took away from this was that people would get a 'one-time' forgiveness. Not an ongoing payment. But if people did get this 'one-time' payment, it would be interesting to see the response of the public wrt to 'where did the money come from?'

Shaun H.

GLH said...

Anyone who still thinks that Steve King grasps the idea of sector economics and how to solve the debt crisis should read this mornings billy blog.

Matt Franko said...

Steve Keen seems heavily invested in an "anti-debt" meme whether "private" or public....

Resp,