Dr Mark Perry reckons it's all been on the up-and-up since 1929. Yes, production has become more efficient over time. But can it be quite as rosy as it seems, when the last quarter-century has seen an explosion of debt?
Dr Mark Perry reckons it's all been on the up-and-up since 1929. Yes, production has become more efficient over time. But can it be quite as rosy as it seems, when the last quarter-century has seen an explosion of debt?
2 comments:
Yep, the growth of debt or more usefully the cost of servicing the debt should be removed from GDP.
Of course you've answered your own question - it is the debt economy which sees us where we are.
And what created that? The breaking of the nexus between incomes and what they could afford. Enter the banks and the ubermeisters - the CBs.
Get rid of them and all goes back to normal.
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