The Debt-Binge Bust

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Fiscal responses to recent recessions have shown Keynesian stimulus to be ineffective.

NRPLUS MEMBER ARTICLE N ever in American economic history was so much owed by so many for so little. The de facto application by both political parties of Modern Monetary Theory, effectively unlimited borrowing and monetary stimulus, is ultimately disproving Keynesian economic principles, of which MMT is a bastardized reductio ad absurdum.

The effort to stimulate the U.S. economy out of its pandemic and lockdown-induced slump has entailed borrowing to the tune of 25 percent of GDP. After an initial burst reopening economic sectors closed by government fiat, the recovery has proceeded at a historically slow pace. While GDP has recovered to its pre-pandemic level,

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