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Not to champion austerity (and no, I'm really not championing austerity), but if increased spending is paid for with increased borrowing, government bonds will
by CountSessine 10y ago
Not to champion austerity (and no, I'm really not championing austerity), but if increased spending is paid for with increased borrowing, government bonds will complete in capital markets and make borrowing generally more expensive for everyone.
Of course right now capital is ridiculously cheap and the economy still isn't doing very well...
- vacri 10y agoAnd government projects improve people's ability to work, whether it's by education or welfare, or negotiating trade treaties, or protecting trade routes (military). For example, the US gets immense economic benefits from it's oversized military, being able to lean on people to give it favourable terms - something to remember for the people who want to 'stop being world cop' (a self-imposed role, taken to improve it's economic power).
- deleted 10y ago[deleted]
- damptowel 10y agoThe amount of GDP going to paying of debt is historically high, it's a huge drag on the economy. http://static.cdn-seekingalpha.com/uploads/2012/5/10/saupload_428250-13363801587809994-Michael-Clark.png http://static.cdn-seekingalpha.com/uploads/2012/5/10/sauploa...