Will we have a debt crisis following the coronavirus crisis? | COVID-19 Update

During the coronavirus pandemic lockdowns have halted the flow of cash to workers and companies, forcing governments to step in. Countries, rich and poor, are burning through vast amounts of money. But it's all on loan.They're taking on debt like never before and could be setting a dangerous precedent. It'll leave younger generations to foot the bill and their financial futures already look bleak. Who will get stuck paying back all that money? Will the younger generation get saddled with it all? Will they be able to cope?

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[dwnews]

As always, we'd love to include your questions in our upcoming shows! What would you like to know about the coronavirus pandemic? #askDerrick

[DiamondGirl]

Since when haven't we had a debt crisis?

Let big banks, big companies and big billionaires pay (for what the have done to the world), let them pay back what they robbed !

[KeepingOnTheWatch]

Will there be a debt crisis after the coronavirus?
Short answer: Yes
Long answer: Y-e-e-s-s-s-s-s-s-s-s-s-s!

[Fishingadventureuk]

Get those trillion dollar companies to pay their tax

[nathanielhopetucker]

This video fundamentally misunderstands how debt works

[Sonobody]

2:33 Yeah of course the kids from lower socioeconomic background will work the low paying jobs and pay taxes while the ones with rich parents will receive payment with interest not to mention contracts and handout from the government. The future is bright.

[helioevangelista]

There’s a solution: rich people must pay tax. After The Second War, rich people used to pay high tax.

[JimM]

so, the older generation delivers us a world full of debt, ecological disaster, unemployment and austerity measures... well done

[Claudia-yddd]

Debt is going to be inflated away. It won‘t be payed back.

[I_dont_need_a_handle]

There is no debt crisis, there is a distribution crisis.
Lets take the contry this report originated from:
- the total wealth of german citizens grew about 393 Billion € during the corona crisis
- in the same time the german government took on additional 130 Billion € in debt.

Now: Does aaaanyone see the problem here?

[johnorosz]

Global wealth grew significantly over the past two decades but per capita wealth declined or stagnated in more than two dozen countries in various income brackets, says a new World Bank report. Going beyond traditional measures such as GDP, the report uses wealth to monitor countries’ economic progress and sustainability. The Changing Wealth of Nations 2018 tracks the wealth of 141 countries between 1995 and 2014 by aggregating natural capital (such as forests and minerals), human capital (earnings over a person’s lifetime); produced capital (buildings, infrastructure, etc.) and net foreign assets. Human capital was the largest component of wealth overall while natural capital made up nearly half of wealth in low-income countries, the report found.

“By building and fostering human and natural capital, countries around the world can bolster wealth and grow stronger. The World Bank Group is accelerating its effort to help countries invest more – and more effectively – in their people, ” said World Bank Group President Jim Yong Kim. “There cannot be sustained and reliable development if we don’t consider human capital as the largest component of the wealth of nations.”

The report found that global wealth grew an estimated 66 percent (from $690 trillion to $1, 143 trillion in constant 2014 U.S. dollars at market prices). But inequality was substantial, as wealth per capita in high-income OECD countries was 52 times greater than in low-income countries. A decline in per capita wealth was recorded in several large low-income countries, some carbon-rich countries in the Middle East, and a few high-income OECD countries affected by the 2009 financial crisis. Declining per capita wealth implies that assets critical for generating future income may be depleted, a fact not often reflected in national GDP growth figures. The report found that more than two dozen low-income countries, where natural capital dominated overall wealth in 1995, moved to middle-income status over the last two decades, in part by investing earnings from natural capital into sectors such as infrastructure, as well as education and health which increase human capital.

[africanwebsite]

Close the military base in Djibouti Africa

[davidbrewer]

9/11 resulted in just 2996 direct deaths & it shoved the global economy into a recession which we never really recovered from. 2007 simply dropped in on top of the 9/11 crash & the world also never recovered from that. This mess will simply stack on top of these two but the bottom line is nobody will ever "repay" these debts, we will simply pay interest on the borrowing for ever & ever over generations into the future...

[mattw]

This is utter BS - at least the first few minutes - and utterly confusing after that. It fails to clearly explain that so-called debt in a country's own currency never has to be repaid. The government can always obtain cash to repay any debt by issuing more bonds. If there are no private buyers, the central bank will buy the bonds. Any and all bonds held by the central bank never need to be repaid and can be written off by decree because the central bank is part of the state. The bond markets amount to an illusion disguising the creation and destruction of money.

[silvialogan]

It is not too surprising that there is a debt crisis. The government keeps on locking down businesses whenever the coronavirus cases surge and people are left unemployed because their businesses are going bankrupt and have difficulty finding another job.

[RachelScalfani]

We already had a crisis, it’s just going to get worse.

[navisoul]

I'm being robbed from My savings.

[mattw]

Utter, utter nonsense about government debt. Based on a false understanding of government finance and bonds. I'll say again, there is no problem with debt in a county's own currency. The actual total level of such "debt" is meaningless because any call on debt can always be repaid with newly created money. Any debt held by the central bank can simply be written off because the central bank is part of the state. The main issues are whether the economy can create the goods and services the money is being used to demand and whether there is sufficient continued demand for the currency.

[lightcreatif]

"Borrow that money" - from where? Aliens?