The Abuse of Public Debt, and How it Sets the Stage for Economic Disaster

by Daniel Fernández Méndez
Mises.org

The 2020–21 recession has been devastating for the global economy. It has been ninety years since the global economy last suffered through a recession of this magnitude (in the Great Depression). Nonetheless, it seems that the social effects of the current recession have not yet come about. The reason for this disparity between cold macroeconomic data and popular sentiment can be found in the enormous public spending by practically all of the countries in the world.1

In a previous article, we explored the enormous expansion of public debt in the world that resulted from the Great Lockdown of 2020

This article argues that exorbitant increases in public debt, such as those seen in 2020, are not free. It examines the potential economic effects of accumulating vast quantities of public debt.

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