Michael Hudson on Why Debt Must be Cancelled in Response to Corona Lockdowns

Executive Summary

• When economies are required by law to shut down, it follows that some debts should be canceled as well.

Introduction

This is explained in the following quotation.

“You cannot bring them back without canceling the dept: let’s put it that way, because if you leave the restaurants owing the rent debt, if you leave the businesses is owing the rent and back debts when they don’t have any and if you leave the states and localities; New York City is broke, the transport system is broke, the transport system is going to have, it doesn’t have the money now, the subways to fix the signals that are dating from the 1940s and the trains don’t run, there’s an almost complete breakdown. Unless you write down the state and local debt or somehow pay it off or fund it with a property tax, you’re going to have a close down on the state and local infrastructure and, without transport, nobody can get to work or out to get a job so we’re in a systemic crisis that is very close to paralysis that looks like it’s going to be peeking around March.” – Michael Hudson

Source: Michael Hudson

https://michael-hudson.com/2020/12/jubillee-perspectives-with-steve-keen/