The global economic crisis, and government policy responses to it, have sparked controversy and debate. Many, including most orthodox economists, claim that the deficit expenditures undertaken in countries such as the U.S. and Japan will impose higher taxes and interest rates on future generations, and some fear a collapse in the dollar and runaway inflation. The problems faced by Greece, Ireland, Spain and other vulnerable members of the European Monetary Union are interpreted as omens of the fate about to befall the U.S. and other nations unless fiscal austerity is imposed and public debt dramatically reduced.

Continue reading →