Earlier quoted context omitted.
> Why will academic R&D begin falling below the rate of inflation? Debt-to-GDP ratios and the cost of servicing existing debt together mean that there are difficult budgeting decisions on the horizon for many western governments. Academic R&D just doesn't have the constituency needed to save it from cuts. I will be a bit astounded if NSF/NIH don't take nominal cuts during the debt ceiling negotiations, and they certa…
> Debt-to-GDP ratios and the cost of servicing existing debt together mean that there are difficult budgeting decisions on the horizon for many western governments That's not at all how modern money and economics work. There is no transfer mechanism from Debt:GDP to economic productivity. That's not to say that a sovereign currency issuing government can't shoot itself in the foot any number of ways of course.
On an unrelated note, I'm not sure what modern money theories you're referring to, but the theories which purported that we didn't have to worry about inflation seem to be... slightly more out of favor than they were 1-2 years ago.