[UkrainianJew]

>You don't get anything "for free", and cutting supports like this will inevitably doom a sputtering economy, when the actual solution was almost certainly more government spending, not less.

Government spending isn't free magic money either. You increase the amount of money in circulation, hoping that people will produce more goods. Instead, you increase the size of the bullshit economy - low-effort activities that only exist under the abundance of money. So more and more stuff gets imported from China because nobody in the right mind will take a $1/hour factory job if you can be a wellness youtuber for a multiple of that. The amount of useless bureaucracy grows, the number of people willing to take responsibility dwindles, but everyone is happy because, well, Mother Government takes care of us all.

Occasionally you notice that the wages don't grow and the housing is unaffordable because the workers don't really have any leverage anymore, but you brush off those thoughts because there are far too many distractions anyway.

Then BOOM, that fragile supply line involving slave labor in China and natural resources from Putin's friends gets broken, and suddenly, we have a shortage of everything, can't manufacture our own stuff, and that freshly minted dollar can buy you many shitcoins, but won't get you any baby formula.

I think, we are about to find out that excessive spending was nothing more than borrowing from our future prosperity, and the time for that debt to mature is coming fast.

[ip26]

That’s when it goes bad, but borrowing against the future to kickstart today is also the principal behind innumerable success stories.

[UkrainianJew]

May I humbly ask for an example? In my personal experience, trying to rush a short-term solution while ignoring the long-term implications always makes situation worse. Like eating planting stock to address immediate hunger would cause a devastating famine next season.

[barry-cotter]

Japan, Taiwan and South Korea all taxed the crap out of their people while poor to subsidise industry by controlling foreign exchange. It still would have been impossible without massive amounts of foreign investment. They had to borrow the money abroad to invest in industrial infrastructure. Same for the US in the 1800s. Britain had the capital. The US had the exciting investment opportunities.

The UK took so long to get to the Industrial Revolution because it had to save the money itself. Everyone since then has been able to rely on capital other people in order countries have saved to jumpstart their economic growth.

[Aune]

Yes. But his point is that what we have been doing is more like taking on credit card debt to spend on booze than taking a bank loan to buy machinery. And assuming that being the case, your statement completely misses the mark.

[ip26]

Let’s say you have land but don’t have any planting stock or enough money to buy it. So, you borrow some from a guy who has extra, promising to give him twice as much back next year. You grow food, and collect enough planting stock to pay back the lender and plant next year’s harvest.

[imtringued]

You don't borrow and eat the planting stock, you borrow the left over products that nobody else bought.

[afterburner]

And example of "borrowing against the future to kickstart today"? Pretty much all businesses borrow to grow. All governments borrow, especially in times of need. Pretty much all people borrow to buy a home.