Post
Topic
Board Economics
Re: America's new debt ceiling - $19,600,000,000,000
by
OrientA
on 31/10/2015, 15:35:44 UTC
Keynesianism relies on the fact that the economy can outgrow debt, which is silly.

It is silly because the GDP grows linearly, but the debt grows geometrically or even exponentially, thus it is by definition a ponzi scheme by design.


There is some truth in the above assertion. The interest for loan is always higher than the interest on savings. So debt will grow faster.