Borrowed Prosperity
 

Many of the world's governments are in debt. Some, like the U.S., are in massive debt.

However, when these debts are paid off, if they ever are, or when interest is paid off, public sector investment grows to some degree, and prosperity continues.

How do I know this? The answer is found in who is on the credit side of this debt: individuals.

This is simple the corrolary of macroeconomic Keynesian deficit spending. When taxes are decreased without government spending decreasing, and vice versa, the economy grows faster. For the very same reasons, when these deficits are paid off economic growth will be rolling.

Re: Borrowed Prosperity
 

Who is on the credit side of this debt: Asia.

Re: Borrowed Prosperity
 

Asia as well, but also individuals in western countries. Not including Japan, whose debt is higher in terms of % of GDP than even the U.S.A.

Re: Borrowed Prosperity
 

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This is simple the corrolary of macroeconomic Keynesian deficit spending. When taxes are decreased without government spending decreasing, and vice versa, the economy grows faster. For the very same reasons, when these deficits are paid off economic growth will be rolling.

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Statements like these make me very grateful that Henry Hazlitt went line-by-line through Keynes' General Theory and showed what a bunch of [censored] it was.

Re: Borrowed Prosperity
 

what a bunch of [censored] it is? This has worked very well in practice, and is widely excepted by almost all economists. THe rest of his theory may or may not work, but this idea does not depend on the veracity of his entire theory.