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Health crisis: let's listen to Ricardo rather than Keynes

2021-01-22T19:35:21.315Z


ANALYSIS - The message of David Ricardo (1772-1823), British economist, can be summed up simply: a present deficit equals a future tax.


While the fight against the pandemic is bogged down, the French state promises to continue to support all employees and companies affected by administrative closures.

But how long can we finance this effort?

Last March, the president called the health battle a war.

The term is certainly shifted from a military point of view;

it makes economic sense.

The coronavirus costs the state billions of euros every week, every day even during a period of strict containment.

Good news in this stagnation: our rulers are not on their own to meet the challenge of financing this war;

they can rely on the insights of two of the most distinguished economists.

The British David Ricardo (1772-1823) and John Maynard Keynes (1883-1946) not only worked on the question as theorists, but also implemented their recommendations in the field.

The first was financial advisor to the Crown during the wars

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Source: lefigaro

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