Debt: Crisis or Opportunity

Western governments intervened on an historic scale during the pandemic. All of which involved borrowing vast sums. Some are claiming the greatest debt crisis in history is already upon us. Governments are now more in debt than at any point in modern history including World War II. The huge borrowing was made possible by uniquely low interest rates. But now with signs of inflation in the system there is a risk rates will rise. Economists predict even a 2% rise in rates will have dramatic effects on Western economies with the developing world facing financial ruin with escalating poverty and hunger.

Is the debt crisis about to spiral out of control and a sign of a more profound structural crisis of the global economy? Should we look at radical solutions to third world debt to save the lives and livelihoods of those impacted? Or can we relax and welcome the contribution government debt has made to our lives and plan for even greater government spending in future?

Former leader of the Lib Dems Vince Cable, senior adviser at HSBC Stephen D King, and bestselling economics author Grace Blakeley lock horns over debt and the global economy.