YOU WILL ALMOST CERTAINLY PAY FOR GOVERNMENT ECONOMIC STIMULUS (WITH INTEREST) AND YOU DO NOT EVEN KNOW THAT
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How do governments finance debt/economic stimulus?
Option 1: Taxes. If the government is receiving more money from taxes than it spends, i.e. the government has a budget surplus, you can pay debit with this surplus. However, the odds of a government having a surplus is about the same odds of finding a unicorn in the street. When the US government, for example, had a fiscal surplus for the last time I was 11 years old and I am now retired. As Nobel Winner Milton Friedman once said, “if you put the federal government in charge of the Sahara Desert, in five years there’d be a shortage of sand.”
Option 2: Printing money. The value of money (i.e. fiat currency) as any other good in the economy is controlled by supply and demand. The supply is established by the central bank and demand is established by the market. If the central bank prints more money than the market requires, we have inflation (Sargent and Wallace, 1975), which is an indirect kind of taxation. The government is not taking your money directly but the money you own is worth less, so the result of taxes and inflation is about the same.
Option 3: Issuing debt (through bonds, treasury bills, etc). Bonds and bills are a kind of loan. The governments can get loans by selling bonds and bills on the market and they do so often. However, it must pay interest on these loans to the bond buyer as everybody else. In other words, once the bonds and bills maturate the government must pay back the entire amount of the loan plus the interest to the bond owner be it you, banks, foreign institutions, etc. At that point, the government can pay the loans and interest (i.e. bonds and bills) with taxpayer money or cutting spending (or issuing more debt). Therefore, the government economic stimulus financed by issuing debt today will have to be paid - with interest - in the future. In other words, there is no free money. All money the government gives came from taxpayers in the past, or most likely will come from their own citizens a couple of years from now, be it through taxes or inflation.
The reasoning explained in this article is widely accepted among the very top economists from left and right-wings. Lambert (2019), asked Nobel laureates and Nobel candidates were asked if "countries that borrow in their own currency should not worry about government deficits because they can always create money to finance their debt." Not even one professor agreed with the statement of the survey. Steven Kaplan from the University of Chicago replied, "at some point, it becomes untenable, and the country becomes Venezuela or Zimbabwe.”