It is pretty sure that by now you have heard or read a decent amount of talk about coronavirus and debt. Maybe it was a piece about how we will service the new pile of the national debt? Or it was about potential insolvency of certain developing countries? Or about issues coming up with potential defaults on consumer and corporate debts.
Hence my question is not if you think we have a lot of debt, or if we will have more after coronavirus is over, but rather what do you think we should do with it?
And to be honest, I’m looking for some fans of the solution mentioned in this tweet:
Does dealing with the “common enemy” sound familiar to you? Then you’ve probably watched one (or too many) president Trump’s coronavirus task force briefings from the White House. He uses this phrase a lot, but that’s not the point.
Point is that just a year ago I would have laughed in disbelief on the thought of forgetting the debts. Because everyone’s debt is someone’s asset, right. But when I read through economic history, I was surprised that this was once a regular tool for balancing society and preventing big jumps in inequality. See deep in history a “Jubilee Year” every 50th year with commandments concerning reset in ownership of land and freeing slaves.
Maybe not only tragic and forced debt restructurings when some countries, companies, or people default but regular re-set is the way we should consider going forward?
What do you say about that?
As always, I’m looking forward to any comments @42opinionz.