- Aug 27, 2008
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I don't think borrowing is a future tax.
What's precisely the difference between taking money now, and taking money now with a promise for it to be repaid with interest? It still deprives the economy of capital, and you don't have to wait for the effects to be seen. Stimulus checks never do anything for precisely this reason.
When the government borrows money, it eventually has to be repaid. Since the government produces nothing, it has take money from the private sector. Thus, the private sector is taxed to pay back money borrowed by the government.