General Discussion
Related: Editorials & Other Articles, Issue Forums, Alliance Forums, Region ForumsWounded Bear
(58,713 posts)Go Bernie!!!!
byeya
(2,842 posts)As austerity tightens its grip, debt, as a percentage of GDP, will go up because the GDP will go down with fewer people working and those that are working receive less pay either through working fewer hours or having their pay cut.
The debt will remain the size it is, or grow a little, but with a shrinking GDP, its percentage will rise and those who control the political economy - who are making out like the bandits they are - will call for more and more austerity.
The USA needs a policy of encouraging 5% annual growth and tolerating a higher rate of inflation.
Otherwise, we face a deflationary debt trap which is far worse then higher inflation.
lovuian
(19,362 posts)sabrina 1
(62,325 posts)Congress. This would be a completely different country and a far, far better one.