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6/2/20

Economics: The political economy of capitalist debt - by Nick Beams

In response to an article last week on the contraction of the US economy and the seemingly endless supply of money being made available to the corporations and Wall Street, a reader raised an important question in the Disqus comment section.

“Could someone please explain,” the correspondent asked, “what the writers mean when they say the money will ‘one way or another, be extracted from the working class?’

“I can understand how debt equals austerity in countries like Greece or Spain, but I don’t really see how this works in America. Isn’t the US trillions of dollars in debt anyway? And if so, what difference do the extra trillions of debt make?

“Is it the case that the trillions allocated to Wall St this month is money directly taken from social programs, or is it more opaque than that?”


Read more at: The political economy of capitalist debt - World Socialist Web Site

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