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You're ignoring interest, and to a lesser extent the effects of corruption and wealth-hoarding. When the U.S. government borrows one dollar to spend, a small a
by feoren 3y ago
You're ignoring interest, and to a lesser extent the effects of corruption and wealth-hoarding.
When the U.S. government borrows one dollar to spend, a small amount goes outside the U.S. economy or disappears in the hundreds of billions of dollars missing from the DoD budget. The remainder is revenue for U.S. entities, some amount of which goes straight into the pockets of wealth-hoarders. Wealth-hoarders want to earn interest on this money, and buy a lot of U.S. government bonds. The government spends that money on things that go back into their pockets, and they additionally earn interest on that same money. It's a great way for the ridiculously wealthy to become the ludicrously-wealthy, but it is not nearly so good for the economy as you imply.