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As is the way with most government debt - ideally, economic growth will outpace the cumulative interest accrued by the debt. There are other externalities too,
by hkt 5y ago
As is the way with most government debt - ideally, economic growth will outpace the cumulative interest accrued by the debt. There are other externalities too, like the economic benefits from quicker transport between major cities.
If you want to ask the size of those benefits, imagine London or New York without their underground/subway systems. It is a big deal and can't just be counted by ticket prices!
- koolba 5y ago> As is the way with most government debt - ideally, economic growth will outpace the cumulative interest accrued by the debt. Actual growth might not, but as most infra spending is financed with fixed rate bonds, a couple more years of Biden’s 9.6% inflation will take a nice bite out of those costs in future dollars.
- hkt 5y ago"Biden's 9.6%" - I'm not american so this seems like a peculiar way of putting it since inflation is spiking across the whole western world. It seems weirdly partisan, was that the intention?