Can we borrow to solve all the world’s problems?
Is it feasible to borrow enough to fund a new energy infrastructure based on solar, wind, and batteries?
Gaining control of the banking system and issuing loans to tackle global challenges may appear attractive. Advocates suggest that the debt could be repaid over centuries, with future generations managing repayment with ease due to low interest rates and the expectation that inflation would diminish the debt’s real value over time.
Borrowing within certain limits is feasible, as the government often operates with a sustained, manageable deficit. However, borrowing trillions to address every societal issue would be counterproductive. Such extensive borrowing would lead to significant currency devaluation and uncontrolled inflation, stalling the economy and disproportionately impacting the poor.[1]