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I always see people say the national debt doesn’t matter because it isn’t like household debt. However, I just fail to see how that is true. At some point the c
by makestuff 4y ago
I always see people say the national debt doesn’t matter because it isn’t like household debt. However, I just fail to see how that is true. At some point the can won’t be able to be kicked down the road anymore. I guess everyone is hoping that it won’t be during their lifetime.
- InTheArena 4y agoPeople still hold to Soviet style, Socialism/communism, why would you be surprised if they’re still holding on to modern monetary theory?
- admax88qqq 4y agoBecause fundamentally the US government can print money to pay US debt. You can't print money to pay off your household debt. It's a different beast altogether subject to entirely different rules and incentives than household debt.
- fwungy 4y agoYes, and we the taxpayers get the privilege of paying interest on the money that is printed based on our nation's creditworthiness. The debt can never be paid. It's by design.
- fundad 4y agoWith tax revenue on growing wages.
- joemazerino 4y agoPrinting money results in inflation. That was my original point.
- admax88qqq 4y agoMy point is just that national debt is more complicated than household debt. And every attempt to reduce it to household debt is flawed. They are fundamentally different.
- lmm 4y ago> At some point the can won’t be able to be kicked down the road anymore. No country other than New Zeeland bothers to properly account for the asset side of the national budget. Increasing liabilities is fine if there's a corresponding increase in assets. But most countries are basically guessing about the second half. (This is also why we see so many wasteful privatisations where national assets are sold off for way less than they're worth)