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It doesn't. The government is spending money it doesn't have. This is common practice that occurs regularly, but never in principle so large. The US governme
by austincheney 7y ago
It doesn't. The government is spending money it doesn't have. This is common practice that occurs regularly, but never in principle so large.
The US government spends far more than it generates in revenue, which is called a deficit. The deficit is typically financed as debt and that debt becomes a financial instrument capable of restructuring, private ownership, and refinancing as secondary debt (debt on an existing debt).
* https://en.wikipedia.org/wiki/Government_budget_balance https://en.wikipedia.org/wiki/Government_budget_balance
* https://en.wikipedia.org/wiki/Government_debt https://en.wikipedia.org/wiki/Government_debt