Do you understand what $100T printed overnight would cause to the economy? The price of everything starting from assets would skyrocket and in a few months we could be living in hyper inflation.
Yes, but it's a temporary turbulence that lasts for a few years, then you can rebound. The debt on the other hand can last for decades taxing the economy more and more. If the cost of servicing the debt crosses a certain threshold there can be no rebound, not without a default.
Effectively when printing money you reset both the debt and the savings. If your debt is much bigger than savings it becomes a good deal.
The US economy still hasn't "rebounded" from the effects of the 2008 recession, forget COVID, even after the bailouts and the offloading of the US debt onto Europe, Japan and China, even though that was in the order of single digit trillions. I don't know where people get the idea that adding a hundred trillion more is where you can cure the deficit. Especially when this time around, you're not going to have EU, China and Japan to baghold for you.
> when printing money you reset both the debt and the savings. If your debt is much bigger than savings it becomes a good deal.
Huh how? When printing money, you make your ability to pay further down the line even more tenuous. I don't know how people can't see the obvious parallels between money-printing and currency-debasing of the Roman times (which led to the economic downfall of that empire).
The only way to cure a deficit while retaining your trustworthiness is to pay it down one way or another.That requires intense taxation for a few years on the rich and corporations alike, and using those proceeds to pay it off. And if possible, to loot someone's gold reserves or something, although that would destroy your trustworthiness on all other fronts and equate you to Nazi Germany.
> The US economy still hasn't "rebounded" from the effects of the 2008 recession
This is a true statement lost on many people who don't remember. The chickens coming home to roost are not from the actions taken during COVID but from the 2008/9 bailout. That's when the whole ZIRP regime started and ran for over a decade. COVID added fuel to that fire but, really, the 2008/9 bailout "kick the can down the road" policy is to blame. We're back to the can and out of road to kick it down.
>.That requires intense taxation for a few years on the rich and corporations alike, and using those proceeds to pay it off.
This is your bias and preference seeping in. Simply put, you need to balance your budget.
The US already has some of the highest corporate taxes in the world. Most countries don't rely on them, and instead focus on the individual pass through profits. most European democracies tax the middle class much more heavily through value-added taxes.
There are so many loopholes in the current tax system. And I say this as someone who benefits massively from the status quo. But like I said, where else can the govt get the cash to "balance the budget"?
And again, European democracies aren't the ideal here when we're talking about balancing the books. Look to the American 1950s and the Clinton Era for better role models.
