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« Consumer Choice and Health Care Reform | Main | 1920-21 and the Great Depression »


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In Switzerland we actually have some kind of solution for this problem called the "debtbrake" (Schuldenbremse):
Whenever the new debt reaches a certain level (which in the near future will be somewhere close to 0 new debt over the business cycle) the government can increase the debt, but has to increase taxes at the same time, so that only half of the new payments can be made by increasing debt levels. And as raising taxes are met with obligatory public vote on the tax raise, this includes the increasing debt as well. So if the public decides that one project is worth the increasing tax level, it could be financed at least partially by dept, but this is already the limit.
There are some loopholes (like the debt of social security that is not yet included in this system) and it does not work perfectly, but it is a quite nice solution.

Blogs are so informative where we get lots of information on any topic. Nice job keep it up!!

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