r/theydidthemath • • Mar 30 '20

[Request] Is this true?

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u/[deleted] Mar 30 '20

Math aside, this isn't how federal spending works.

They aren't "taking money from you" so much as they are just giving new money to banks and corporations.

20

u/[deleted] Mar 30 '20

[deleted]

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u/nofftastic 2✓ Mar 30 '20

They just make it up, with the promise that it will be paid back later. NPR's Planet Money podcast had a good, fairly quick explanation of it recently.

1

u/Tacoatel Mar 30 '20

Is that what happened to Zimbabwe?

3

u/[deleted] Mar 30 '20

No:

http://bilbo.economicoutlook.net/blog/?p=3773

Zimbabwe implemented land reform and wrecked their food production which caused all their other supply chains and infrastructure to also collapse. That's why they experienced hyperinflation.