Author : Richard E. Wagner
Publisher : Cambridge University Press
Page : 129 pages
File Size : 47,7 Mb
Release : 2019-05-30
Category : Business & Economics
ISBN : 9781108758338
Public Debt as a Form of Public Finance by Richard E. Wagner Pdf
Economists commit a category mistake when they treat democratic governments as indebted. Monarchs can be indebted, as can individuals. In contrast, democracies can't truly be indebted. They are financial intermediaries that form a bridge between what are often willing borrowers and forced lenders. The language of public debt is an ideological language that promotes politically expressed desires and is not a scientific language that clarifies the practice of public finance. Economists have gone astray by assuming that a government is just another person whose impulses toward prudent action will restrict recourse to public debt and induce rational political action.