Tag: politics of debt

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America’s real ‘debt dilemma’

sanjay perera

by Sandy Brian Hager (forthcoming) In the wake of the current crisis there has been an explosive rise in the level of the US public debt. These massive levels of public indebtedness are expected to keep growing unless there are drastic changes to existing budgetary policies. This apparent dilemma has sparked a debate over which groups should bear the burden of debt repayment and fiscal adjustment. However, one crucial question remains unasked: whose powerful interests are served by the public debt? America’s real ‘debt dilemma’ Every man and woman who owned a Government Bond, we believed, would serve as a … Continue reading America’s real ‘debt dilemma’

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A critique of Capital (3): Toward a moral economy

sanjay perera

by Sanjay Perera
We return to the idea of general equilibrium and the transcendent nature of it espoused by economists and the problems ensuing from this. Another normative aspect to this for economists, in terms of what good a state of equilibrium can produce is highlighted by the so-called Pareto criterion. Continue reading A critique of Capital (3): Toward a moral economy

A critique of Capital (1): The problem with economics

sanjay perera

by Sanjay Perera
In the introductory lines of a textbook on economics are these words: “Are Marxists correct in arguing that only vast expenditure on arms saves the capitalist countries from a return of mass unemployment? Or have we now learned…how to avoid forever such devastating situations? Why, then, in the late 1970s, did unemployment in Britain, the United States and several other countries reach the highest levels ever attained since the Great Depression of the 1930s?” Continue reading A critique of Capital (1): The problem with economics

The Politics of debt in America: From debtor’s prison to debtor nation

sanjay perera

by Steve Fraser Shakespeare’s Polonius offered this classic advice to his son: “neither a borrower nor a lender be.”  Many of our nation’s Founding Fathers emphatically saw it otherwise.  They often lived by the maxim: always a borrower, never a lender be.  As tobacco and rice planters, slave traders, and merchants, as well as land and currency speculators, they depended upon long lines of credit to finance their livelihoods and splendid ways of life.  So, too, in those days, did shopkeepers, tradesmen, artisans, and farmers, as well as casual laborers and sailors.  Without debt, the seedlings of a commercial economy … Continue reading The Politics of debt in America: From debtor’s prison to debtor nation