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Lithuim t1_iyd1rvp wrote

The government can print money indefinitely, and so has the ability to basically spend whatever it wants.

The problem is that money is ultimately just numbers on pieces of paper, and if you make lots of money without making any actual stuff to buy then all you’re doing is making the existing money worth less - a process called “inflation.”

As expected, churning out $2T without any actual economic growth did cause inflation, and now all your money is worth 10odd percent less than it was is 2020.

They can also cook up $2T more to cancel debts, but you’d expect the same inflationary results.

That debt isn’t just imaginary, real people at real banks sent real money to real schools to spend on real things. It can’t just be zeroed without economic consequences.

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reviewbarn t1_iyd6exp wrote

Your first paragraph is accurate. The government can print money indefinitely with a forever balance of benefits/problems.

Your second paragraph is quasi accurate. Overprinting money is ONE way inflation can happen, but not the only one. And more importantly, it is NOT the cause of the current GLOBAL inflation, nor is it relevant to the OP's question.

He asked specifically how two programs were paid for, and neither were paid for in the manner you suggest here.

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throwawaydanc3rrr t1_iydp5i8 wrote

If the $2T in stimulus was not paid for with taxes and debt, please enlighten me, how was it paid for?

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reviewbarn t1_iydvffy wrote

What are you asking? It WAS paid for with taxes and debt. It WAS NOT paid for by printing more money as the post I responded to suggested.

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