this post was submitted on 19 Jun 2024
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[–] [email protected] 53 points 8 months ago (5 children)

Heyo, national economies need to run at a deficit. The amount of debt needs to be maintained but running a negative is a good thing because the interest payments become stable capital injection. These regular, anticipated payments build the confidence of very conservative money managers to spend their own money. It's trickle down but in a way that helps increase the likelihood of money being spent, which is basically the GDP. And the speed of people spending money in the system is a metric that central banks use to set interest rates.

It's all connected and that's why running a deficit, a (relatively) small one, is a good thing. Nations don't use checkbook accounting.

[–] Shiggles 24 points 8 months ago

At this point, I just use someone complaining about the national debt as a secret code for them saying “I have zero idea how economics works”.

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