It causes asset inflation which are overwhelmingly owned by the rich. The capitalist system does not require constant growth to succeed. It requires periodic "creative destruction" to rid the system of excesses and begin a new phase of expansion. Regrettably the last 30 (maybe 50) years have been a Keynesian mad house where every dip is greeted by more government debt and every "recovery" also seems to lead to more government debt. Governments love one aspect of the Keynesian model but are not too keen on the other side.
And so here we are. Do we respond with more debt, guaranteeing that the eventual reckoning will be even more catastrophic, or do we take our medicine now. Paraphrasing the old Irish joke, I wouldn't start from here if I wanted to get there.
