3 ms·
If productive output really stays the same while employment (and tax revenue) drops, there are only two ways for the government to stay solvent: 1. Print money
by drivebyhooting 8mo ago
If productive output really stays the same while employment (and tax revenue) drops, there are only two ways for the government to stay solvent:
1. Print money
2. Increase taxation
That’s it. An eroding tax base necessitates one of those or a combination.
- lazide 8mo agosure, but also looking at the pattern of who is involved - they could also declare bankruptcy (even if federal gov’t bankruptcy isn’t actually a thing).