MODERN economics and finance have for centuries normalised risk shifting rather than risk sharing as an acceptable practice. Debt, be it public or private, becomes a necessity. The unfortunate consequence and cost to society is widening income inequality at the expense of social and economic justice.
Excessive debt exposes vulnerability and triggers systemic risks that can lead to unexpected catastrophic or black swan events such as a financial crisis. The term black swan, introduced by Nassim Nicholas Taleb (a former option trader and retired New York University professor), refers to unforeseen and consequential events that would lead to catastrophic outcomes.
