Can governments spend their way out of a slowdown?

Can governments spend their way out of a slowdown?

Economists seem conditioned to think that we need to suffer before an economy can get back on track. They argue an economy can’t grow if there is a large amount of accrued government debt. That the economy needs confidence to grow, and the confidence won’t exist the government owes a lot of money.


Phil suggests to Steve that confidence and the private sector’s a willingness to invest are two staple requirements for economic growth. A government deficit will also help, but does it really help in terms of the growth in the money supply as much as private borrowing? And isn’t a growth in the money supply essential to growth?

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Episoder(512)

Too slow for zero?

Too slow for zero?

This week Phil and Steve confront the mathematical and environmental reality of a "zero growth" future, sparked by a debate over the deflationary traps of finite currency systems like Bitcoin. Steve t...

7 Jul 42min

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Challenges for the reserve currency

How much longer can the United States rely on the US dollar to dominate the global financial system, and what happens when the cracks finally start to show? In this week's Debunking Economics podcast,...

2 Jul 39min

The world’s anti-migration shift to the right

The world’s anti-migration shift to the right

Phil and Steve confront the global surge in anti-immigration rhetoric and right-wing political momentum, tracing its roots to the structural failures of neoliberalism rather than the actions of migran...

23 Jun 48min

GDP is hopelesss as a relative measure

GDP is hopelesss as a relative measure

Steve and Phil critique our systemic over-reliance on Gross Domestic Product (GDP) as the definitive baseline for comparing global economies and measuring societal well-being. The discussion underscor...

17 Jun 45min

 Is Labour right to cut tax incentives for housing speculators?

Is Labour right to cut tax incentives for housing speculators?

This week Phil and Steve dig into the storm of controversy over Australia's new budget rules targeting property speculators. The Labor government has scaled back negative gearing and abolished the 50%...

10 Jun 44min

Hedging an Uncertain Future

Hedging an Uncertain Future

This week Phil challenges Steve on how the futures market handles terminal risk, pointing out that oil prices slope downward over time simply because traders blindly assume the Strait of Hormuz will r...

20 Mai 38min

Conditioned to borrow, not save

Conditioned to borrow, not save

This week Phil and Steve dismantle the structural shift of the global economy toward a permanent state of debt dependence. Following a critique of Steve’s recent debate on the Piers Morgan show and a ...

13 Mai 45min

Improving Productivity

Improving Productivity

In this episode of Debunking Economics, Steve Keen dismantles the mainstream economic obsession with "Total Factor Productivity" (TFP), labeling it a mythical construct that ignores the laws of physic...

6 Mai 32min

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