Policymakers have a tried-and-true game plan for jump-starting the economy in times of severe recession: Push stimulus packages and lower interest rates so Americans will borrow and spend. But economist Amir Sufi says the way we traditionally address a recession is deeply flawed. He argues that by encouraging "sugar-rush" solutions, the nation is putting poor and middle-class Americans and the entire economy at even greater risk. This week we look at the role of debt as a hidden driver of recessions, and how we might create a more stable system.

Hidden Brain

[email protected] (Hidden Brain Media)

Buy, Borrow, Steal

JUN 22, 202048 MIN
Hidden Brain

Buy, Borrow, Steal

JUN 22, 202048 MIN

Description

Policymakers have a tried-and-true game plan for jump-starting the economy in times of severe recession: Push stimulus packages and lower interest rates so Americans will borrow and spend. But economist Amir Sufi says the way we traditionally address a recession is deeply flawed. He argues that by encouraging "sugar-rush" solutions, the nation is putting poor and middle-class Americans and the entire economy at even greater risk. This week we look at the role of debt as a hidden driver of recessions, and how we might create a more stable system.