‘Spend Now, Deal With the Consequences Later’ Is Worst Policy

‘Spend Now, Deal With the Consequences Later’ Is Worst Policy
U.S. dollar banknotes are displayed in this illustration taken on Feb 14, 2022. Dado Ruvic/Reuters
Daniel Lacalle
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Commentary

Governments and central banks have become the lender of first resort instead of last resort, and that’s immensely dangerous. Global debt soars, inflation creeps in, and many of the so-called “supply chain disruptions” are the result of zombification after years of subsidizing low productivity and penalizing high productivity with increased taxes.

Daniel Lacalle
Daniel Lacalle
Author
Daniel Lacalle, Ph.D., is chief economist at hedge fund Tressis and author of the bestselling books “Freedom or Equality” (2020), “Escape from the Central Bank Trap” (2017), “The Energy World Is Flat”​ (2015), and “Life in the Financial Markets.”
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