Baby Buffett: How to invest for children
Many Happy Returns
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Can Government Borrowing Be a Problem for Future Generations?
The central bank is left in this sticky problem of how do you get out of this? You can't raise interest rates because it reduces demand. And i think the other issue they raise in that paper is a lot of the debt is owned, effectively, by the richer people in society, who spend less. So it's kind of a self reenforcing way of increase inequality. The rich spend less of their income than the poor, so you just get less and less demand over time. Yet the propensity to spend reduces as you get more wealth. That's ta difficulty with redistributive policies, yes.
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