Re:40% of US dollars in existence were printed in the last 1...
by imtringued on Sunday October 10, 2021 @12:05PM
(#28819488)
>The gov is not your household
That's true but the funny part is that people misunderstand it in an especially contrived way. A companies job is to increase its net worth to make profits for its investors. A government's job is to increase its net worth to provide public services to its citizens.
The goal behind investments is to achieve an increase in your net worth. Whether you spend your own money or borrow money doesn't really matter, the point is that you make the investments that you think you need. Businesses should invest for obvious reasons. Governments should invest too but in traditional areas like infrastructure, health care or education.
Businesses do not do "austerity" full stop. They borrow heavily to grow. Households do not do austerity either, they borrow heavily to buy real estate. Strangely enough it is governments that should do austerity and be responsible and stop investing for future benefits. It's basically just anti government rhetoric.
When a $250k/year household borrows $2 million to buy a house nobody bats an eye even though that household has a 800% debt to household income ratio.
That's true but the funny part is that people misunderstand it in an especially contrived way. A companies job is to increase its net worth to make profits for its investors. A government's job is to increase its net worth to provide public services to its citizens.
The goal behind investments is to achieve an increase in your net worth. Whether you spend your own money or borrow money doesn't really matter, the point is that you make the investments that you think you need. Businesses should invest for obvious reasons. Governments should invest too but in traditional areas like infrastructure, health care or education.
Businesses do not do "austerity" full stop. They borrow heavily to grow. Households do not do austerity either, they borrow heavily to buy real estate. Strangely enough it is governments that should do austerity and be responsible and stop investing for future benefits. It's basically just anti government rhetoric.
When a $250k/year household borrows $2 million to buy a house nobody bats an eye even though that household has a 800% debt to household income ratio.