Today’s Wealth Destruction Is Hidden by Government Debt

Still unnoticed by a large part of the population is that we have been living through a period of relative impoverishment. Money has been squandered in welfare spending, bailing out banks or even – as in Europe – of fellow governments. But many people still do not feel the pain.

The Myth of Austerity

by Philipp Bagus, Many politicians and commentators such as Paul Krugman claim that Europe’s problem is austerity, i.e., there is insufficient government spending. The common argument goes like this: Due to a reduction of government spending, there is insufficient demand in the economy leading to unemployment. The unemployment makes things even worse as aggregate …