So I'm not an economist by trade, I've just taken an interest in it since my economy was poured down the hole by the experts. While the substance of your essay (and most economic theory) makes sense on paper, it just doesn't end up working out that way in real life. We're spending money we don't have and that can't go on forever.
I understand the argument for spending by the state. But looked at without all the pretty paper justifications, what would you say about a state that was just printing scads of money? Runaway inflation? How about a state that was building up a massive debt that it would never, ever be able to pay off? At what point to people stop buying those bonds? That seems to be what's going on in the municipal bond market right now.
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I understand the argument for spending by the state. But looked at without all the pretty paper justifications, what would you say about a state that was just printing scads of money? Runaway inflation? How about a state that was building up a massive debt that it would never, ever be able to pay off? At what point to people stop buying those bonds? That seems to be what's going on in the municipal bond market right now.