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If we ever paid down the national debt it would be a disaster. The government prints its own currency. The only reason to borrow is to give the market 100% accu
by xenadu02 10y ago
If we ever paid down the national debt it would be a disaster. The government prints its own currency. The only reason to borrow is to give the market 100% accurate information on exactly how much the government is spending, as opposed to just printing more dollars. As long as the economy grows faster than the debt it can be rolled forever without any major problems.
Of course taxes are near historic lows in the post-war period so we can easily pay for it by raising taxes.
I'll also point out that the infrastructure spending stimulates the economy, generating tax revenue so the long-term cost isn't perfectly correlated with the immediate price tag. As long as the private sector isn't at capacity (or the spending is limited to actual infrastructure needs) it won't distort the market.