People Need Debt to Get Circulating Money

The reason we cannot proceed at once with safety to bring about the scientific relation between total active buying power and productive capacity by some such method as the payment of old-age pensions, is that as soon as government spends money into circulation there is no way of telling at present whether, when that money shows up in the private banks in the form of reserves, you are going to get a i-for-i expansion of bank credit or a 6-for-i expansion of bank credit.

https://www.unz.org/Pub/SocialJustice-1938jun20-00015

https://www.unz.org/Pub/SocialJustice-1938jun20-00004?View=AllYears