David Harvey on Why Everyone is in Debt

An excerpt of a longer interview between Aaron Bastani and David Harvey from earlier this year.
Full interview: novara.media/2vaIGOv
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[@NANA-kf1cs]

This emphasises even more why austerity was and is a political choice by this Conservative government. Wasn't austerity meant to be about reducing the debt, you know because "we are all in this together"? The debt since the Conservatives came to power in 2010 has only gone up, which tells you they are either incompetent or ideologically driven by cruelty. I'd personally say both of those answers are correct.

[@lwil1226]

N/A N/A The Left and those on the Left have absolutely no understanding of basic economics. We spend more than we collect in tax. Simple. Austerity was required to reduce the debt and interest rate payments on that debt. How else do you propose getting back into the black or any where near a manageable level. To say it is cruel to impose austerity is immature. Do you propose we keep spending more than we earn? So that future generations like my children and grand children can be left with what is currently unsustainable debt levels. Bankruptcy is beckoning, any suggestions? Thought not.

[@oliviathe0wl]

L Wil1 Why can’t they raise taxes instead??

[@LawrenceWoodman]

Keith, a large part of those at the bottom don't pay tax, in fact if they are claiming child tax credits, working tax credits, etc - they are generally paying negative tax. This is why we should have a single flat tax so that if people want to raise tax then it raises for everybody rather than just saying we want more and we want someone else to pay for it.

[@LawrenceWoodman]

+EjectorSeat I understand, but when we talk about people paying their fair share, most people simply aren't and yet they want other people to pay more. I am sympathetic to poorer people and that's why I think a flat tax should be coupled with a negative income tax. The two combined would make the whole system more efficient, reduce tax evasion and other unwanted behaviours that the current system encourages. It would also remove means testing that punishes success and rewards failure. Flat tax: kzbin.info/www/bejne/mnjRd5ajfa1qqpY Progressive tax: kzbin.info/www/bejne/iWerdntoaLySmK8 Negative income tax: kzbin.info/www/bejne/rqXTmJ6Oap1rpK8

[@wobblywob6157]

@@lwil1226 auditing the debt to find corrupt culprits, actually taking labour/social safety protecting measures, negotiating the debt, having the central bank (ECB) take technical measures (like in the US), etc. It used to be common knowledge for economists a few years ago that you don't butcher the economy during crises and pump it up in prosperity, you do the opposite so that the ups and downs aren't as rough (Keynesianism), as a national economy isn't really like a household. But maybe that doesn't suit the current state of casino economics and neoliberal ideology

[@ChrisRodia]

If you owe the bank $100 that's your problem. If you owe the bank $100 million, that's the bank's problem. J. Paul Getty

[@passiveftp]

depends what the $100 million is secured against...

[@dazpatreg]

4:39 still makes me laugh

[@allypoum]

Love Prof Harvey. He's my top Marx teacher...

[@ddd-ly3rv]

The synchronization of capital is heavily unsynchronised. Debt was always the unwillingness to raise taxes.

[@tanujSE]

I hope he is fine

[@chriswalker7632]

Why is nobody talking about the 🍞mouthfeel?🍞 - i.e. the second law of thermodynamics?

[@coopsnz1]

Because Government put you in debt growing it bigger , plus bringing in higher taxtion in Australia 10% -25% tax on goods , 18% -51% tax on cars ' 30% - 48% income tax , 50% tax off small and Medium business turnover ' 20% stamp duty on a home . Why Australia has the highest private debt in the world blame Government greed by overpaid politicans on 200k -500k salaries . Small and Medium business owners have millions dollars of debt to pay off , why wages stagnant private sector 45 yrs. Small business owners are lucky to bring home more than $50000aud yearly

[@IshtarNike]

David Harvey's friend sounds like Donald Trump.

[@somebuddycool]

Milhouse: Say the line Bart! Bart: ...True Communism has never been tried. Whole Class: YAY!!!!!!!!