Monday, February 7, 2011

Outrageous Public Debt

Yesterday, I blogged about the need for the U.S. Government to take on more debt merely to pay off its debt, which seems outrageous to me. Last year, economist Guido Hulsmann appeared at Grove City College and presented a lecture entitled "Outrageous Public Debt." You can watch the lecture by clicking here.

In an interview given the same week of his talk he explained his thesis as follows:

Public debt helps politicians to pretend that they are solving problems, while in fact they create more problems. It shifts decision-making into the future, while burdening the present and the future. It reduces the funds available for investment and entails excessive consumption. When public debt is high, it makes the economy more prone to be hit by financial crises, and it also poses a great threat to the stability of all savings. But even when it is low, public debt undermines the economic foundation of a free republic and thus paves the way for tyranny.

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