Heavy public debt has been one of the most important reasons why over 5 to 6 years the economic and social structure of western society has been under stress. Unemployment zoomed and then remained at high level, while national income is lower than what would have been expected in an average recovery. This provides politicians and common citizens with three options, in line of diminishing likelihood:
• Continue meddling through hoping to buy time,
• A slow, very slow, improvement of the economy and in employment, and
• A global “perfect storm” leading to a new economic depression.
The meddling through scenarios is the more likely. Steady improvement has lower probability and is optimistic, based on the hypothesis that ...