For many years I’ve had the sneaking suspicion that government debt really doesn’t matter. For my entire life, it has almost always went up and up each year. And when it’s politically convenient, one party cries that the sky is falling.
But the sky never falls.
Last week I stumbled across Stephanie Kelton and her economic theory of Modern Monetary Theory, and it goes a long way in explaining the reality of our economy and the facts on the ground.