So, how much debt is too much? More than the government admits

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A great article under the above title from Paul Segal concludes:

Kenneth Rogoff has argued that we should not worry about the effects of cuts because "anaemic growth with sustained high unemployment is par for the course in post-financial-crisis recoveries". It may indeed be par for the course. But why should we accept it? Death from an infected toenail was par for the course before the discovery of antibiotics. Medical advances have now made it eminently avoidable. Keynesian fiscal policy is a great advance over the 19th century economics to which the likes of Rogoff and Niall Ferguson wish to condemn us. We should use it.

Recommended reading.


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