Quote: Originally posted by drzura | Quote: Originally posted by John Harper | Quote: Originally posted by drzura | On a serious note, I just looked at the national debt clock, which is currently more than $28,000,000,000,000. I would like to hear some honest ideas
from fellow Nomads on how they think that will be paid, if at all. |
The United States is an "ongoing concern" in business terms. But, we are not a business. We can borrow, spend, and print money. As long as there is
"full faith" in the future of the USA, there is no problem with debt. Older theories about national debt impacting the credit market have shown to be
less impactful than predicted. Kind of like the power of tax cuts for the rich providing higher wages, etc. We know how that works.
Either way, take a look at Modern Monetarist Theory, it has its merits. Global monetary demand is more important than most people think. It was
called "petrodollars" in the 1980's, just evolved into MMT, as economists realized all those petrodollars were absorbed into the global economy.
The result: low inflation for a long time now, and with projected growth to absorb the new spending and dollar market, probably low inflation as
well.
Obviously, certain markets will fluctuate. Supply and demand still exert a lot of force on prices, more than an oversupply of dollars. Look at rent
in Los Angeles, completely based on limited supply/high demand. Let's pay $15 and hour in Alabama, Mississippi, etc and take the pressure off housing
in Los Angeles. Give people a reason to move to places with excess housing.
John
[Edited on 4-27-2021 by John Harper] |
I see you said that "We can borrow, spend, and print money". Do we ever have to pay it back? Do you think we can legitimately pay it back? I am
just thinking that there has to be some dollar ceiling where people will not have "full faith" that it will ever be paid back. I do not know what
that dollar amount is and nor does anyone else. I heard that if interest rates ever normalized, the country would be screwed. Well.. someone told me
it's all funny money anyways not backed by anything. Should probably just enjoy the ride while it lasts. |
Well, as long as the GOPers keep cutting taxes, and dems and GOP won’t cut spending, the debt will rise.
The logical thing to admit is that we all like government services, and we all just need to pay taxes to fund govt services.
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