Concerning stuff

[Mark in Ottawa]

I recently read an article on how the Canadian Government paid off their huge debt from WWII and my impression was that the US government handled their war debt in the same manner. The approach as to how they paid the debt was simple: they didn't specifically pay it off at all. What they did was wait for the economy to grow to the point that the total national debt, including the war debt, become such a small fraction of the GDP that it became acceptable if not irrelevant. It was then just handled in the usual way that government debt is handled. I suspect that both governments will now use the same approach since massive tax increases now would not only stunt the economy but would be very unpopular politically

[Vern Humphrey]

I recently read an article on how the Canadian Government paid off their huge debt from WWII and my impression was that the US government handled their war debt in the same manner. The approach as to how they paid the debt was simple: they didn't specifically pay it off at all. What they did was wait for the economy to grow to the point that the total national debt, including the war debt, become such a small fraction of the GDP that it became acceptable if not irrelevant. It was then just handled in the usual way that government debt is handled. I suspect that both governments will now use the same approach since massive tax increases now would not only stunt the economy but would be very unpopular politically

Actually, they monetized the debt -- they let inflation grow to the point where the debt became insignificant. When they borrowed the money, a dollar was worth 100 cents. They let inflation reduce that value to a few pennies.

[dryheat]

Interesting little lesson about economics. How does the outcome look these days? The democrats will surely raise taxes(that's what they've said,and that's what they do) but tax who? If no one is making any money. Somehow maybe syphon off some of the billions made in the stock market in the last four months. Me, being a little guy didn't even know we had this kind of money to spread around. But paying millions of peoples rent month after month can't go on(at least I don't think it can). Going with the theory above can we expect whopping inflation? I took a class in economics but it was a long time ago and only one semester.

Who expected this? (Not me. Remember my link to the Titanic vid?)

https://www.statista.com/statistics/1104283/weekly-nasdaq-index-performance/

If it's inflation(and I hate inflation) dig out all that change and spend it on something.

[Vern Humphrey]

Interesting little lesson about economics. How does the outcome look these days? The democrats will surely raise taxes(that's what they've said,and that's what they do) but tax who? If no one is making any money. Somehow maybe syphon off some of the billions made in the stock market in the last four months. Me, being a little guy didn't even know we had this kind of money to spread around. But paying millions of peoples rent month after month can't go on(at least I don't think it can). Going with the theory above can we expect whopping inflation? I took a class in economics but it was a long time ago and only one semester.

Who expected this? (Not me. Remember my link to the Titanic vid?)

https://www.statista.com/statistics/1104283/weekly-nasdaq-index-performance/

If it's inflation(and I hate inflation) dig out all that change and spend it on something.

First of all the billionaires don't have enough money -- you could strip them down to their boxer shorts and only get enough to run the government a few months. And in the process, you'd completely collapse the economy -- because the rich don't have their money in dollars, they have it in property. To pay the taxes, they'd have to sell their property -- dumping a huge amount on the market all at once.

I asked my daughter -- who used to live in New Jersey and was infected by the Liberal bug -- "Who do you like for President?"

She said, "I like what Bernie says. But how will he pay for it? He SAYS he'll tax the billionaires, but you know he'll tax the shrinking Middle Class -- until there is no Middle Class.