What these institutions like the IMF don’t understand is that countries aren’t like households and we can just continue to borrow and increase our debt… or something 😅
“Nice remaining scraps of a social fabric you’ve got there, it would be a shame if something were to happen to it before it could be sold off.”You’re sorta right. The economies of sovereign nations are not particularly similar to small households, however continuously incurring debt without raising significant revenue will kneecap a country’s economy (eg the UK). Rather than focusing exclusively on debt the IMF should be strongly encouraging countries like the UK to drive up revenue by all means. The most obvious way of doing this is by raising taxes. The IMF is, however, in the thrall of big money which is fundamentally opposed to tax’s.
