Amount Quote by Steve Keen
“If you have a sane economy, and by sane economy I mean one which is not addicted to debt, not a Ponzi economy, then the change in debt each year should contribute a minor amount to demand. Therefore, if you tried to correlate debt to the level of unemployment you would not find much of a correlation. Unfortunately that is not the economy we live in.”
About This Quote
Source Book: Debunking Economics by Steve Keen, 2012
A sane economy avoids debt addiction; debt growth should minimally affect demand, yet real economies differ.
In simple terms: Debt should be limited, but reality varies.
Key Takeaway
Recognize debt's role in demand.
Themes
economics
debt
policy
Mood
analytical
critical
Type
academic
economic
When to use this quote
- government budgeting
- investment decisions
- economic forecasting
Key Concepts
Macroeconomics
financial stability
Questions to Reflect On
- How does debt influence growth?
- What policies can reduce debt risk?
A Different Perspective
Complex systems may not follow simple rules.
