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> If a government can demonstrate that it borrows money to invest in the economy and increase future taxes -- e.g., by building infrastructure, educating the po
by dnautics 6y ago
> If a government can demonstrate that it borrows money to invest in the economy and increase future taxes -- e.g., by building infrastructure, educating the population, researching top-notch tech -- by all means, borrow more!
That's remarkably shortsighted. You're missing whole swaths of knock-on effects of borrowing. What if I told you that the government only borrows money on the backs of the working class, who pay for it in increased prices that the economist class doesn't measure because they have lost touch (compare the increase in price of a quarter pounder vs cpi)... Then would it be worth it unlimitedly borrow?
- dctoedt 6y ago> What if I told you that the government only borrows money on the backs of the working class, who pay for it in increased prices that the economist class doesn't measure .... "Objection, your honor — assumes facts not in evidence."
- imtringued 6y agoStop with the bogeyman conspiracy. The working class prefers low unemployment and high salaries over losing a few percent on a checking account. Inflation is generally good for workers and bad for owners of unproductive capital. Yeah, sure, owners of productive capital benefit, but only by employing workers which is a net loss compared to getting free money without productive investments.