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I may equally lose that money. There's a reason that government debt pays less. The sooner they get their money, the less time it is exposed to that risk.
by cheerlessbog 8y ago
I may equally lose that money. There's a reason that government debt pays less. The sooner they get their money, the less time it is exposed to that risk.
- AnthonyMouse 8y agoFrom the perspective of the government the risk is extremely diversified -- across all taxpayers and all investments. And it remains the case that the average returns from the stock market exceed the average interest rate on US government debt.
- cheerlessbog 8y agoIf you squint, that is a Keynesian argument, since it potentially justifies government borrowing more money and handing it out for the economy to invest. It is just a matter of degree - again my point that it is not necessarily a good idea.