Write a ~ 300 word response to this question:
1. What pressures have driven the debt build up in the West? Is the debt-based growth model sustainable?
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The author should argue that debt-based growth is sustainable so long as it is regulated and discuss how government borrowing can be used to reduce inequality and improve economic growth. Household debt should be limited.
Answer should be referenced in-text. Sources to be used include but more are welcome:
Bell, S. and Keating, M. Competing Claims: Households, Debt and Real Estate, in Wither the Lucky Country: Competing Claims and Australias Economic Future, draft MS (see below).
Stockhammer, E. 2015. Rising Inequality as a Cause of the Present Crisis, Cambridge Journal of Economics, 39: 935-58.
Streeck, W, 2011. The Crisis of Democratic Capitalism, New Left Review, 71.
Turner, A. (2016) Between Debt and the Devil, Princeton University Press, Princeton, read the Introduction Too important to be left to bankers.
