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Debt-fuelled consumption is a bit of a Ponzi scheme. We should borrow to invest

Debt is bad. We all know it. It brought on the financial crisis. Our governments need austerity. We need to stop living beyond our means. “Neither a borrower nor a lender be.” Sebastian Mallaby suggests in today’s FT that Mitt Romney should come out against debt and bring American capitalism closer to a pay-as-you-go model. Sounds sensible. Does he have a point?

Actually, I don’t think he does. Mallaby’s conventional, sober opinion is worth…

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