A very informative article on Ann Pettifor’s Debtonation blog examines the current public debt ‘crisis’ in the historic context of past crises and explains why government investment pays for itself:
In 1945…’the heavily indebted Labour government began to spend - as soon as legislation was agreed by Parliament. Labour started to invest in a bold and visionary project: - a publicly funded health service free at the point of use - the NHS - in 1946. (The American Congress is today proposing a similarly bold investment in a ‘public option’ for their health service.)
Back then, the Labour government carried out a massive slum clearance programme, and built houses. They revived the ancient universities, provided pensions and welfare to the poor. They trained ex-soldiers to become teachers…..’
http://debtonation.org/2009/10/1945-government-debt-bond-markets-sterling-and-all-that/
