I've read that new projects are harder to materialize. The infrastructure bill seem to be formulated in aware of this though as many items involved are in repairing existing ones and upgrading. Still, some of it can go to waste.
American Economics Thread
- Thread starter Bernard
- Start date
What the actual bleep.
EU sets a 3% deficit limit for it's member states, and the US is going for 15%, part of the American exceptionism! it's interesting to see how will it finance the deficit after the normalization.
There was some stupid talk about a 'great reset'.
So maybe that or maybe the US will led their vassals to 'just cut debts' for some stupid reason or whatever, although that would severely undermine current financial system and also the dollar position/status.
They could maybe convince nations by saying they want to create a new world currency led by the UN, and that every nation has a stake in it depending on their economy size.
Besides the above wild ideas i don't see how else they are gonna finance the debt.
antiterror13
Brigadier
cutting debt is almost impossible under democratic capitalism. it's one of the fundamental flaws of the system.
democracy means you always have opposition, which means you cannot have your way as you wished, you can only have "half of your way".
the Democrat's way is: tax and spend, but raise tax is hard, even rolling back Republican's tax cuts is nearly impossible, so Democrats usually get half of their way: spend.
the Republican's way is: cut tax, cut spending. The Democrats will resist any spending cut, so the Republicans usually get half of their way: cut tax.
the gap getting wider and wider, and the debt piles up.
antiterror13
Brigadier
But, it works very well in NZ until C19. NZ had a very low debt/GDP, just increased because of C19
NZ govt is much more generous than the US to social spending .... the unemployment benefit in in NZ is very very good relatively
Perhaps NZ spend very little in military, unlike the US
this may have something to do with the demographic structure, in a homogenous society, people are willing to compromise.
the last president who reduced debt was bill clinton