Author Topic: Government Day-to-Day  (Read 53311 times)

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Offline wilber

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Re: Government Day-to-Day
« Reply #120 on: February 04, 2020, 09:17:58 am »
I assume you're talking about potential interest on the funds if they were left in gov't coffers. This is not a loan it's an investment and the figures show me it will pay for itself simply through job creation. (You know about income tax eh?)

No, I’m talking about actual interest paid or owing. Right now we pay about 26 billion annually to service the federal debt. The projected 20/21 deficit is about 28 billion. That means 26 of the 28 billion we will be borrowing is going to pay interest on what we already owe.

Assuming interest rates stay low, that’s 26 billion annually plus interest on any additional borrowing passed on to future generations in perpetuity. If interest rates rise, which they eventually will, that number will go up.
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