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Not surprising given the inflation reduction act spends an additional $891 billion and the Chips act which adds another $280B to the governments debt - taken to
by jcfrei 3y ago
Not surprising given the inflation reduction act spends an additional $891 billion and the Chips act which adds another $280B to the governments debt - taken together about 19% of the usual yearly federal expenditure. It also contributed to the high government debt to GDP ratio of 144% - for comparison the EU is at 81%. It's quite a gamble by the Biden administration - if it creates lots of flourishing businesses it will be well worth it. But if a lot of the funded ventures collapse after the money is spent then this additional debt will be a burden for the American taxpayer for quite some time.
- username332211 3y ago> It's quite a gamble by the Biden administration - if it creates lots of flourishing businesses it will be well worth it. But if a lot of the funded ventures collapse after the money is spent then this additional debt will be a burden for the American taxpayer for quite some time. Both will happen. First, businesses will expand to absorb the subsidies, then over time their assets will be sold to private equity to be destroyed. Why run a business that earns 7% ROI, when you can get 5% risk free from the treasury?