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by yywwbbn
1402 days ago
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> Treasury doesn’t get more income unless it substantially raises taxes. Government revenue generally should increase inline with inflation. As long as GDP growth (unadjusted by inflation) is higher than the interest rates the amount of real debt will go down over time. Historically debt to GDP ratios went down during periods of high inflation, even without any real growth it’s possible to inflate most pf the debt away as long you find people willing to lend you money at low rates (even 5% when inflation is 8-9% is mot that bad$ |
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