Re:2020 had some significant silver linings
by Der_Einzige on Friday December 25, 2020 @12:21PM
(#25537677)
Not sure why you're being downvoted for good analysis.
The key is for your country to not have a significantly higher debt to GDP than competitors of similar economic development. The USA has further advantages in that much of its debt is owned by other Americans (who have strong vested interest in the ability for the USA to pay its debts).
That being said, we could have spent FAR MORE and increased debt FAR MORE in the USA without serious downsizes - even if COVID hadn't happened!
It turns out that "fiscal responsibility" literally does not matter and is in fact DETERMINTAL to the economy. The velocity of money is all that matters. This is why VCs who are never profitable are still a net positive for the economy, because they facilitate velocity. The US govt pumping money into the economy PREVENTED A FAR WORSE LIQUDITY CRISIS which we were at serious risk of earlier given that it looked like we'd be seeing DEFLATION rather than inflation earlier on...
The key is for your country to not have a significantly higher debt to GDP than competitors of similar economic development. The USA has further advantages in that much of its debt is owned by other Americans (who have strong vested interest in the ability for the USA to pay its debts).
That being said, we could have spent FAR MORE and increased debt FAR MORE in the USA without serious downsizes - even if COVID hadn't happened!
It turns out that "fiscal responsibility" literally does not matter and is in fact DETERMINTAL to the economy. The velocity of money is all that matters. This is why VCs who are never profitable are still a net positive for the economy, because they facilitate velocity. The US govt pumping money into the economy PREVENTED A FAR WORSE LIQUDITY CRISIS which we were at serious risk of earlier given that it looked like we'd be seeing DEFLATION rather than inflation earlier on...