Classical economists - mainly Smith, Ricardo and J.S. Mill - abhorred public debts because of their interference with capital accumulation. J.S. Mill in particular envisaged that a rising public debt leads to higher interest rates and falling real wages, a combination which may be consistent with a mildly increasing trend in the profit rate.
Keywords: Classical Economists, Public Debt, J.S. Mill, Ricardian Equivalence
Jel Code: B12, B13, B14, B16, H50