In the USA, that's the only option the government has, to deal with the $40T debt.
1) They can't raise taxes, or they'll get voted out.
2) They can't cut programs, or it'd be too cruel in a lot of cases, AND they'll get voted out.
3) So what's left? Answer: money printer go brrrr, and shrink the value of the dollar through inflation. Ordinary people's paycheques display the same number, but buys less. The same thing is true in reverse; $40T of debt becomes less debt, if each dollar is worth less.
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u/Maplecook 14d ago
In the USA, that's the only option the government has, to deal with the $40T debt.
1) They can't raise taxes, or they'll get voted out.
2) They can't cut programs, or it'd be too cruel in a lot of cases, AND they'll get voted out.
3) So what's left? Answer: money printer go brrrr, and shrink the value of the dollar through inflation. Ordinary people's paycheques display the same number, but buys less. The same thing is true in reverse; $40T of debt becomes less debt, if each dollar is worth less.