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Remember that money is debt. If the government is in debt, it means that the balance of money in the rest of the economy is positive. Government debt is a key
by bryanlarsen 2y ago
Remember that money is debt. If the government is in debt, it means that the balance of money in the rest of the economy is positive.
Government debt is a key part of making sure there's adequate money in the economy. Without adequate money to lubricate an economy, really bad things happen.
- s1artibartfast 2y agoThe holders of debt obligations are not necessarily the same as the debt interest. I can loan you $100, at 200% interest. We will expand the economy. Good for me and bad for you. If that is a net benefit at the end of the day remains to be seen.
- inglor_cz 2y ago"net benefit at the end of the day" Also, there is always day D+1, when benefits may turn into losses. But perhaps, on that day, the person who made the debt is going to be dead.
- s1artibartfast 2y agoIt all comes down to the cost of borrowing and the ROI. This is true for societies as well as individuals.