Toronado3800
Gold Member
- Nov 15, 2009
- 7,608
- 560
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f you are speaking of your personal finances, I agree. However, if you speaking of the government or most large corporation, you should have a talk with your economics professor. The largest corporation in this US and the world do not pay off their debt and they have no plans to do so. When bonds come due they refinance by issuing more bonds. Granted, they have to control their debt ratios a lot better than the government but the government unlike a corporation or an individual controls their revenue. They just increase taxes. Unlike a corporation or individual they can always borrow more money by just offering more interest.
The Republicans just keep feeding us this ridiculous analogy
I can agree on the ridiculousness of it. Check out the back of your 1040 instruction booklet. Someplace in there it tells you the percentage of government outlays which go to pay interest on the debt. To some extent this is lost money, 7% that could have been paid towards giving everyone in America a solar panel or bigger tanks for the army, whatever.
There is an opportunity cost/benefit analysis. Something like "Deficit spending on them Sherman tanks in the 40's sure did save us money in the long run" type an affair.