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To what extent should debt be justified in the economy?
Title: To what extent should debt be justified in the economy?
Category: Social Sciences / Political Science
Details: Words: 959 | Pages: 4.1 (approximately 235 words/page)
To what extent should debt be justified in the economy?
Keynesian economics is the idea that government spending can be used to stabilize the economy, and stresses the importance of moderate economic growth. According to Keynes, during prosperity governments should reduce spending to avoid inflation and to slow down consumer spending in order to maintain stable growth. During times of prosperity Keynesian theory states that governments should pay off debt, reducing the amount of money lost to interest payments. In Keynesian theory debt from fiscal …showed first 75 words of 959 total…
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…showed last 75 words of 959 total…and the Klein government has balanced the budget and paid off most of the debt without raising taxes. Klein's following of Keynesian economics has helped Alberta to have practically no debt, when the NDP overspent during the 1990s in British Columbia, which now pays 30 cents of every tax dollar servicing the debt of over billion. Housing costs 40% less in Alberta than in Ontario and unemployment has been low at 5.1% in 2003, the second lowest in Canada.
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