Re:America Faces a Debt Nightmare
by CPLX on Thursday May 04, 2023 @12:28PM
(#35818046)
The thing that would hold you back is the amount of productive resources the country has.
You could print millions of dollars and send it to people, but that wouldn't make houses come from nowhere, so it would just increase inflation.
On the flip side, you could print millions of dollars and use it to build housing and infrastructure and fund education in the trades and so on and then it would actually help houses get built.
And so on. The point being that the notional deficit doesn't really matter at all. What matters for increasing wealth is the ability of the country to produce material wealth, and government spending is either helping that or not.
You could print millions of dollars and send it to people, but that wouldn't make houses come from nowhere, so it would just increase inflation.
On the flip side, you could print millions of dollars and use it to build housing and infrastructure and fund education in the trades and so on and then it would actually help houses get built.
And so on. The point being that the notional deficit doesn't really matter at all. What matters for increasing wealth is the ability of the country to produce material wealth, and government spending is either helping that or not.