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> When a government issue debt they are creating financial assets that allows the private sector to operate. An interesting mental experiment is to think in wh
by tdeck 9y ago
> When a government issue debt they are creating financial assets that allows the private sector to operate. An interesting mental experiment is to think in what would happen if all the governments pay all the 'debt' and stop spending.
There's a great Planet Money about this, and what happened when the US paid off its debt in 1835:
http://www.npr.org/sections/money/2012/08/07/158376579/episode-273-when-the-u-s-paid-off-the-entire-national-debt http://www.npr.org/sections/money/2012/08/07/158376579/episo...
- tdeck 9y agoSo I listened to this again and I feel compelled to update that it's merely a good Planet Money, not a great one. Not as much detail about the issue as I'd remembered.