Modern society is too dependent on debt: we should all pay our way

Stance

AGAINST the blanket claim — debt has essential, bounded roles.

Three-point core in Aryan's words:

• Disagreeing with the assumption that debt is bad for our current economy: it isn't — it allows diversification and risk sharing to fuel current projects, key government systems and other things without civilisation collapsing.
• Future generations and future human prosperity need large-scale projects which cannot wholly be government funded — therefore we need debt for the future. Even if we are dependent on it, it is a necessity, so we are not too dependent on it.
• We are not too dependent on debt because the government has strategies to reduce debt in place: e.g. monetary and fiscal policy, governmental accountability and democratic legislation to prevent excess debt and debt servicing.

Jurisdiction focus: UK/EU/US (mixed). Word budget target: ~750.

Must-use thinkers/cases: Modigliani (life-cycle), Holmström (incentives), Barro (tax smoothing), Blanchard (r<g), Minsky (financial instability), Rawls (just savings), IMF/OBR (stabilisation).

Definitions