Post
Topic
Board Economics
Re: US National Debt / Deficit - How does it end?
by
RoadTrain
on 13/09/2014, 23:19:54 UTC
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I say, "create new currency" and you say, "debt issuance" or "deficit spending". They are the same, except the terms you use make it unnecessarily complex sounding.
No, they aren't the same.
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A child can understand that the same effort went into both scenarios, but that scenario #2 resulted in additional net wealth. You don't need to argue with me, the empirical evidence proves that Socialism is complete bullshit.
You missed my point.

Scenario #1: People are unemployed.
Net effect: poverty, human capital depreciation.

Scenario #2: People are digging ditches.
Net effect: we have ditches, poverty is reduced, still human capital depreciation.

Scenario #3: People are building infrastructure: roads, bridges, etc...
Net effect: we have improved infrastructure, human capital is preserved, poverty is reduced.

I prefer the third scenario, while you seem to prefer the first.