My discussion on “How High Debt kills GDP”, BNN, December 13 2011:
In segment 1, I show – and measure – how a high debt load crushes GDP. I introduce the concept of “scientific bankruptcy” and show its implications for the US going forward.
In segment 2, I propose a means by which the debt load of all levels of government could be eliminated. I also ask why economists fear debt reduction when the evidence shows clearly that lifting a massive debt load always results in faster levels of growth.
In segment 3, I discuss Canada’s experience in eliminating the debt burden of its own social security plan, the Canada Pension Plan, and then ‘semi-privatizing’ it. The lessons for Social Security are clear and very promising.