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No, you get paid interest because money now has less value than money in the future. Hence why you pay interest to a bank on a loan or mortgage, but if you fail
by CamouflagedKiwi 4y ago
No, you get paid interest because money now has less value than money in the future. Hence why you pay interest to a bank on a loan or mortgage, but if you fail to repay they don't just write it off saying "oh at least we got some interest!"
- bidirectional 4y agoThe US government gets to pay x% interest because they can theoretically always service a debt denominated in USD. Every other borrower in USD pays (x+y)%, where y amongst other things represents the risk that they will default.