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>> Hint. Debt is used to purchase assets. This is true for corporate loans, but in case of federal budget most of the money borrowed are spent on things like h
by mamon 7y ago
>> Hint. Debt is used to purchase assets.
This is true for corporate loans, but in case of federal budget most of the money borrowed are spent on things like healthcare, pensions, food stamps, etc. which aren't exactly profit-bringing assets.
- Mikeb85 7y agoAny money that goes to consumers at least partially is returned in taxes. Infrastructure is a big spending item and again, increases commerce and taxes. Government loans are also special in that money can be printed to repay them.