Here in the United States, as a result of a misguided and irresponsible tax cut, the federal budget deficit is expected to top $1 trillion a year in 2019, on top of the $20 trillion of outstanding debt, crowding out other borrowing and putting upward pressure on interest rates.
Of course, any movie depicting a gritty, cyberpunk-y city sits in Blade Runner's shadow, but this one doubles down on the debt, crowding its skyline with enormous holographic advertisements — an obvious echo of the giant billboards that dominated Ridley Scott's futuristic Los Angeles.
Moreover, the rescue package Ireland's government agreed to on the 21st included a provision to pay back senior bank creditors in full, something that surprised the distressed-debt crowd who had flocked to Dublin to hear about the scale of the haircuts they would be asked to bear.
But the adamant anti-debt crowd do have some allies on Capitol Hill, who don't think the business community should have much say on debt issues.
Whenever a candidate spoke about the debt limit, crowds expressed dismay at the idea of raising it.
That would reduce government debt (which crowds out private needs for capital) and cut the demand for tax increases (which depress investment).
Our message was not that servicing the public debt was crowding out private sector investment, it was that the servicing of excessive public sector debt was crowding out needed social programs: health care, education and child welfare.
First, that the need to divert savings into buying public-sector debt will "crowd out" private-sector investment.
But higher levels of debt will crowd out productive investment, slow wage growth and ultimately undo any gains from reform.
