Repeat after me: debt is money we owe to ourselves. It doesn't make the nation as a whole poorer.
I n our case it has been well demonstrated that public debt, visa central banking, results in wealth concentration.
What Delong and Krugman will not say is that the shift in liquidity to government happened almost two years ago, and has not changed. What they get right is that we all are 'Keynesians' now, that moment Nixon commented about before the gold defaults. That is the debt that may be reversed.
But that is not in the charts, so fare, the prior liquidity shift is in the charts, it means less retail banking and ore wealth concentration, which we have all been watching. That has already happened, Krugman calls it headwinds but refuses to name it, Delong is in denial.
There was the seven year rebuilding time for the California public sector, it is still there, and it hasn't changed, so far. The side effects of covid are all about slowing down the previous adjustment process. It is the conditionals and skew bot that these two do not track, others do track them. The conditionals, in this case, is the piling on we see, the 'Never let a crisis' thing. They are not reversible, the path back from covid conditionals to relative independence is erased. We end up coloring more beach ball then we planned.
Jerry Brown calls us the boom and bust economy. No other UC economist has done a better job of economic analysis. We were all ready, had out tax fights everywhere, local governments having hiring freeze, our Supremes in full union defense, unions over ruling legislative duties. All the usual signs of our periodic readjustments, well observable.
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