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US debt repayments (notes, bonds, etc.) are already a significant portion of our budget ($522B in 2020)... do we really want to increase that even more?
by TimTheTinker 5y ago
US debt repayments (notes, bonds, etc.) are already a significant portion of our budget ($522B in 2020)... do we really want to increase that even more?
- tedunangst 5y agoYes.
- option 5y agoNo, we shouldn’t
- nostrademons 5y agoThat's what inflation is for. Increase money in circulation by 10x such that price levels rise by 10x, and you increase both tax receipts and government spending by 10x. (Well, technically tax rates go up more than that because of bracket creep, and government spending goes up less than that because the government is a monopoly and can bargain effectively for specialized services.) The absolute value of the debt and the money needed to service it remains constant, though. Instead of public debt being 127% of nominal GDP, it becomes 12.7% of nominal GDP. Just get ready for big-denomination bills, and, well, starvation and social unrest if you're in one of the social classes unable to raise your wages to capture some of that money floating around.