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There's an assumption there that buying down the national debt is an important goal. Reasons that one might not want to take that position: * Having debt helps
by ai_critic 11mo ago
There's an assumption there that buying down the national debt is an important goal. Reasons that one might not want to take that position:
* Having debt helps keep a currency useful as a global reserve and store of value, with great soft-power benefits (though, honestly, the reverse is more true--being the reserve currency makes running up a debt easier).
* Having debt helps keep us out of capital-W War, as it binds nations together financially--if we owe another country a sufficient amount, they have a vested interest in seeing it come back. (Incidentally, historically, this is a shaky assumption as well.)
* Having a policy allowing for debt helps make re-investment in infrastructure and civilization-scale efforts more easy to accomplish.
* Having a debt helps encourage inflationary currency policy, which (in moderation!) has knock-on stimulatory effects on the economy. Some minor inflation is good for helping to encourage people to spend rather than hoard.
The more cynical take, of course, is: how can we not afford to pay UBI?
* Is it cheaper to remove, retrain, or simply resupply folks who are otherwise economic unproductive?
* Is it politically expedient to buy off the population whose only useful product is votes than to balance the budget?
* People are upset about work and making rent today...creditors of the US are some distant threat, and it's unlikely any politician will be in-office when that bill comes due--why hold off?
* We've spent more money on dumber things, what's wrong with this?
I don't exactly agree with any of the above points (in either category), but it's not hard to imagine people who do.
- mojomark 11mo agoThanks. I do understand the value in holding debt, to my engineering brain it's analogous to a heat sink - without it, energy (money) has impetus to flow. I guess I don't have a good sense for what "the right" amount of debt is for a country, so to your point, I don't really have solid reason to assume we should even care about buying down our debt. I think the root of my confusion was clarified by the other reply above - it's not that the US just has a stash of excess capital coming in and UBI is a way to spend it, but rather UBI is a way for a government to step in, and force it's ultra-rich citizens to put their money back into the economic engine at the base level... like an artificial mechanism to account for some percieved flaw in the natural capitalistic process.
- ai_critic 11mo agoNo problem! The big thing--usually missed by most folks, especially engineers whose intuitions and experience are correct but in the wrong domain--is that you don't balance a country's budget like you do a household's. The scale is different, the incentives are different, the problems and tools are different. Of course, to confound things, it's entirely possible that we should treat a country's balancebook like a household's, and it's just the dumb luck of near 3/4 of a century that we've gotten away with assumptions like mine. :)