Deficit Owls | Government Surpluses Can Cause Economic Disaster @deficitowls5296 | Uploaded August 2016 | Updated October 2024, 5 hours ago.
Professor Steve Keen (Kingston University) on the sectoral balances of government surpluses. A government surplus removes money from the economy, which can reduce private bank accounts and force citizens into debt to banks.

(One caveat is that in this video Keen is discussing only the case of balanced trade. If a nation has a trade surplus, they may be able to sustain a government surplus, since money to pay it is coming from the foreign sector. Conversely, a country with a trade deficit will need to run an even larger government deficit in order to replace money that is lost to the foreign sector.)

Watch the whole lecture here: youtube.com/watch?v=dA_p0VqV2ck

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