You won’t make me say that debt is any good. On a personal level, I avoid debt like the plague. I feel ensnared when I owe money. But thats my personal feelings. Especially democracies tend to go for more and more public debt to satisfy their populations every whim. And politicians are happy to take on those debt loads as they want to get elected. And this goes on until the country collapses – or close to that. The real problem is that before some real collapse, bad policies cannot be reversed. In a sense, all this bad debt taken on by COVID brings us close to the point when things will snap. This will be an ugly moment, but it’s unavoidable anyhow so bring it on.
The pandemic is further reshaping how we think about sizable public debt. Some who may have once been spooked by the concept seem to be okay with it now.