Re:Student Loans. Medical Debt. Criminal Justice Fees. Cance...
by AnimalMuppet on Friday July 02, 2021 @01:05PM
(#27714073)
I think you may have that backwards.
There are two scenarios. In the first, the government simply prints the $1.5T. That's newly created money. $1.5T has been added to the economy overnight. It's been created, not destroyed.
The second scenario is where the government takes the money from somewhere else (maybe taxes). The money is removed from somewhere (someone's assets), but the exact same amount of debt is also removed. The net is zero - neither creation or destruction, just rearrangement.
There are two scenarios. In the first, the government simply prints the $1.5T. That's newly created money. $1.5T has been added to the economy overnight. It's been created, not destroyed.
The second scenario is where the government takes the money from somewhere else (maybe taxes). The money is removed from somewhere (someone's assets), but the exact same amount of debt is also removed. The net is zero - neither creation or destruction, just rearrangement.