Neoliberal Debt and the Need for Sovereign Money
Tim Di Muzio is Associate Professor of International Relations and Political Economy at the Woollongong University in Australia, and offers us 5½ pages of what economic lessons may be learned from the coronavirus pandemic.
He sees covid-19 as offering us a “teaching moment”, as did the World Wars, the Great Depression and the GFC. He cites Freidman’s observations “only a crisis – actual or perceived – produces real change” and that economists’ basic function is to “develop alternatives to existing policies, to keep them alive and available until the politically impossible becomes the politically inevitable.”
The trillions of dollars being used to fund the lockdowns are insufficiently available from existing money owners, and are therefore funded by Commercial Banks to a lesser extent and the Central Banks to a greater extent. These last two increase the money supply and society’s debt to the Banks to the extent that they lend.
Post-pandemic this debt threatens years of hardship and financial difficulty for millions of people. He offers an alternative which may warrant your attention. Click on the document icon below for the full article.
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