A few months ago now, I came up with a rather radical idea to get us out of this financial pickle we’ve found ourselves in.
That idea was catchily called: Reset the Debt.
(I know, I know, I should get paid for this sort of stuff.)
Anyways, it wasn’t just a catchy slogan, the idea was to reset everybody’s debts to zero so we can start spending again. Yippee!
A bit like winding back the milometer on your car. Not that I’ve ever done that, you understand.
I posted it on TED and got pilloried for it as being economically naive. I might not be a global economist, but I am in the business of coming up with ideas to solve business problems.
And most radical ideas can be a bit frightening.
Well now, (he says, blowing onto his fingernails and polishing them on his lapel), Steve Keen is a global economist, and he’s advocating exactly the same thing.
Basically, the reason people aren’t spending is because they’re paying off their debts.
The government is giving money to the banks who aren’t passing it on to their customers. Presumably because they don’t want oiks like us getting into even more debt. They’d rather give it to their employees in the form of big fat tax free bonuses.
Mr Keen’s point is: Get the government to invest the money by paying off its citizens’ debts to kick-start the economy. [Obviously measures would have to be put in place to prevent people from getting back into debt and living within their means.]
The economy won’t grow if people don’t buy anything.
Otherwise, Mr Keen argues, the way the government is handling the Great Depression at the moment, it could take us 20 years to get out of it.
Who’d a thunk it? A Batley lad solving the world’s economic crisis.
Reset the Debt. I can see the placards now!
Hang on a sec. Just let me stick one of them © thingys on it.
I’ve decided to set up an e-petition to garner some support for this idea. I need 100k signatures to get the Govt to discuss it in the House of Commons. If you think it’s an idea worthy of discussion, please add your name and share to as many people as possible.