Like, the profits can't keep coming if production doesn't keep coming. Can the government just borrow against future production and keep the ball rolling indefinitely, or is it going to come crashing down very soon?

Econ nerd pls help, my humanities degree did not prepare me to answer these questions.

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  • LeninsRage [he/him]
    ·
    4 years ago

    No, something that has been exposed by COVID is that the financial economy has become completely disconnected from the productive economy. American high finance has become so hegemonic and industry offshored overseas that supply chains are being badly disrupted but the financial economy is hitting record highs, largely due to government subsidization. What the government took away from 2008 is that the financial economy must be propped up at literally any cost.